1. An investor is interested in buying shares in CapeStorm which has a low P/E ratio. Other things being equal, indicate which of the following is most likely about CapStorm.

The firm's dividend payout is (low/high/constant)

The firm's ROE is (low/high/constant)

The firm's growth is (low/high/constant)

The firm's risk is (low/high/constant)

2. An analyst gathers the following information about Andromeda and two of its peers.

What is the answer?

Thank you! I will thumb up, please answer all these questions.

Andromeda Cygnus Magellanio $16 418 Share Price (per share) 15 Number of Shares outstanding $40 Cash $56 $25 $150 Debt (market value) $30 $40 $17 EBITDA Based on this information, calculate the relative value (in $ per share) of Andromeda's shares