Calculate the ROE of the Newtown Co. if sales = $234,182, total assets = $149,350, profit margin = 4.3%, and equity multiplier = 1.2.

Windham Inc. stock pays a dividend $1.3 at t = 0. From that point forward it will have a constant growth in dividends of 5.4 percent. If stocks in a similar risk category as Windham Inc. need to have expected return of 7.8%, what would investors want to pay for Windham stock? Hint: first calculate dividends at t = 1.