5. Magic The Gathering Trading Company is expected to have EPS in the upcoming year of $9. The expected ROE is 13%. An appropriate required return on the stock is 12%. If the firm has a plowback ratio of 65%, what should be the price of the stock?

6. A company has an expected ROE of 12%. If it pays out 28% of its earnings as dividends, what will be its dividend growth rate?

Enter answer in percents to two decimal places.

7. A firm is planning on paying its first dividend of $2.9 three years from today. After that, dividends are expected to grow at 3.7% per year indefinitely. The stock's required return is 11%. What is the intrinsic value of a share today?

8. Zombie Manufacturing Company is expected to pay a dividend of $4.77 in the upcoming year. Dividends are expected to grow at 4.9% per year. The risk-free rate of return is 2.4%, and the expected return on the market portfolio is 8.6%. Investors use the CAPM to compute the market capitalization rate and use the constant-growth dividend discount model to determine the value of the stock. The stock's current price is $99. What is your estimate for the market capitalization rate of this asset?

Enter answer in percents to two decimal places.