1. Chucky Cheese, a children's hands-on activity center, has a Book Value of $31,200,000 with 600,000 shares outstanding. This past Monday it announced earnings of $5,040,000 for the past year. What are book value-per-share eps ROE 2. Chucky retained none of the earnings. As of yesterday (Tuesday), investors expected that policy to continue. But they are optimistic, given the economy's recovery and society's renewed affinity for children, hence add 1% to the recent ROE when assessing Chucky's future. If they apply a discount rate of 10%, what was the stock price yesterday? (Hint: Use DDM) 3. Today, Wednesday, Chucky surprised investors and announced they will begin paying out 50% of earnings as dividends. Investors continue to use the same (new) ROE as they did yesterday. However, now that the company is more risky, they add 3% to the discount rate. What is the new price-per-share today? (Hint: use the Gordon Growth Model.) 4. Moe purchased Chucky Cheese shares yesterday and sold them today. What is his (unannualized, or holding period) ROI? 5. Larry did the same as Moe, but used margin, putting up 60% of his own funds. What was his ROI? 6. Curly Joe sold the stock short yesterday! He added 25% to the cash collateral. What was his ROI? 7. Suppose an investor purchases the stock today and borrows 40% of the purchase price at a rate of 5.5%. She holds it for a year. A year from today ROE turns out as expected and the dividend is paid as planned. What must be the price then in order for her to achieve an ROI of 20%