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5 a Midwest Lumber had a profit margin of 5.15, a total assets turnover of 1.6, an interest burden and tax burden of 1, and

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5 a Midwest Lumber had a profit margin of 5.15, a total assets turnover of 1.6, an interest burden and tax burden of 1, and an equity multiplier of 18. What was the firm's ROE? 14.39% b 14.69% 14 99% d 15,29% 15.59% Rutland Corp's stock price is $30.25 and its earnings per share for the past year were $2.As. The forecasted earnings per share for the future 12 month are $2.32. What is its trailing (not forward) P/E ratio? 6 30.25/2.45 a 11.65 b 12.00 @ 12.35 d. 12.70 13.04 7. Gagliardi Way Corporation has an expected ROE of 15%. If it pays out 30% of it earnings as dividends its dividend growth rate will be A. 4.5% B. 10.5% C. 15.0% D. 30.0% 8. A financial analyst following Fast Start Inc., a new high-growth company, estimates that the curren risk-free rate is 6.25%, the market risk premium is 5%, and that Fast Start's beta is 1.75. The curre FCFF (FCFFO) is $1. The company's FCFF is expected to grow at a rate of 25% this year, 20% next and 15% the following year. After three years the FCFF is expected to grow at a constant rate of forever. The company has no debt and is 100% equity. What is the current stock price estimatec using dividend discount model? a. $16.51 b. $17.33 C. $18.53 d. $19.25 e. $19.89

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