Company Q’s current return on equity (ROE) is 13%. The firm pays out 45 percent of its earnings as cash dividends. (payout ratio = .45). Current book value per share is $53. Book value per share will grow as Q reinvests earnings. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to 11.0% and the payout ratio increases to .70. The cost of capital is 11.0%.This is for Part B I am not sure of my Answer. B) What is Q’s stock worth per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Stock worth per share $Puranjay0106 answersPlowback ratio = 1 –payout ratio = 1.0 –0.45 = 0.55Dividend growth rate = g= Plowback ratio × ROE = 0.55 × 0.13 = 0.0715ROE = EPS0/Book equity per shareEPS0 = 0.13*53 = $6.89DIV0= payout ratio × EPS0= 0.55× $ = $3.50after 4 year g = Plowback ratio × ROE = (1 –0.7) × 0.11 = 0.033Year EPS DIVIDENDS1 6.89*1.0715=7.38 7.38*0.45= 3.3212 6.89*1.07152=7.91 3.553 6.89*1.07153=8.47 3.8114 6.89*1.07154=9.08 4.0865 6.89*1.033*1.07154=9.38 9.38*0.7= 6.56

Ticker services began operations in 2015 and maintains long-term investments in available-for-sale securities. the year-end cost and fair values for its portfolio of these investments follow.portfolio of available-for-sale securities cost fair valuedecember 31, 2015 $ 369,060 $ 357,988 december 31, 2016 420,728 445,972 december 31, 2017 572,190 676,901 december 31, 2018 864,007 768,966 prepare journal entries to record each year-end fair value adjustment for these securities.calculation adjustment required to fair value adjustment.12/31/15 existing balance in fair value adjustment-afs (lt) required balance in fair value adjustment-afs (lt) adjustment required to fair value adjustment-afs (lt) 12/31/16 existing balance in fair value adjustment-afs (lt) required balance in fair value adjustment-afs (lt) adjustment required to fair value adjustment-afs (lt) 12/31/17 existing balance in fair value adjustment-afs (lt) required balance in fair value adjustment-afs (lt) adjustment required to fair value adjustment-afs (lt) 12/31/18 existing balance in fair value adjustment-afs (lt) required balance in fair value adjustment-afs (lt) adjustment required to fair value adjustment-afs (lt) record the year-end adjusting entry for the securities portfolio as of december 31, 2015.date general journal debit creditdec 31, 2015 record the year-end adjusting entry for the securities portfolio as of december 31, 2016.date general journal debit creditdec 31, 2016 record the year-end adjusting entry for the securities portfolio as of december 31, 2017.date general journal debit creditdec 31, 2017 record the year-end adjusting entry for the securities portfolio as of december 31, 2018.date general journal debit creditdec 31, 2018