A) You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $1.25 in divindends and $32 from the sale of the stock at the end of the year. The maximum price you would pay for the stock today is _____ if you wanted to earn a 10% return. (6 marks)

b) Use the following to answer questions a-d

Paper express company has a balance sheet which lists $85 million in assets, $40 million in liabiilties and $45 million in common shareholders equity. It has 1,400.000 common shares outstanding. The replacement cost of the assets is $115 million. The market share price is $90.

i) What is Paper Express book value per share?

ii) what is paper express market value per share?

iii) what is paper express replacement cost per share?

iv) what is paper express tobins q?