Question

PLEASE ASSIST WITH E and F 

Setup: *the​ investor's required rate of return is14 ​percent

•the expected level of earnings at the end of this year

​(Upper E 1E1​) is $14​,

• the retention ratio is 35 ​percent,

• the return on equity ​(ROE​) is

16 percent​ (that is, it can earn

16 percent on reinvested​ earnings), and

• similar shares of stock sell at multiples of 7.738

times earnings per share.

a. Determine the expected grth rate tor dividends. b. Detemine the price earnings ratio (PEt c. Whal is he slock price usig the PE ralio valualiori melho? d. What s the stock pnce sing the divndend dscount model e. What would happen to the P/E ratio (PE1)and stock price if the company increased its retention rate to 65 percent (holding all ese constant)? what would happen to the PE retio(E dividends? f. What have you loamed about the relationship betwoon the retention rate and the PE ratias? c. Vha is the stock price using the PIE ratio valuation methoa? and stock price if the company paid out all its eemings in the form of S108.33 Round to the nearest cent) d. What is the stock price using the dividend discount mocel? S 108 33 Round 10 the nearest rent ) e i Using the dividend discount model what would be lhe stock price if the company increased its relention rale u 65% S136.11 Round to the nearest cent.) ' nat would be the Pt ratio(P茫1) It the company increased its retention ratio to 55% (holding all else constant)? hciding all else constant)? (Round to three decimal places.)