Web Cites Research projects a rate of return of 10% on new projects. Management plans to plow back 20% of all earnings i

[answerhappygod]

Web Cites Research projects a rate of return of 10% on new
projects. Management plans to plow back 20% of all earnings into
the firm. Earnings this year will be $1 per share, and investors
expect a rate of return of 4% on stocks facing the same risks as
Web Cites.
a. What is the sustainable growth
rate?
b. What is the stock price?
c. What is the present value of growth
opportunities (PVGO)?
d. What is the P/E ratio?
e. What would the price and P/E ratio be
if the firm paid out all earnings as dividends?