Chipotle has bonds and stocks that trade in the public marketplace. Their growth prior to COVID was strong and during COVID, they have benefited tremendously from the stay at home trade. Answer the following questions on their stock and bonds.

a) As Chipotle has been growing. they've increased their market share in the quick service restaurant industry. Chipotle recently paid an annual dividend of $3.00. Dividends are expected to grow at 35% in year 1, 20% in year 2, 10% in year 3 and 4% thereafter.The required rate of return is 10%. What price would you pay for the stock? The stock is currently selling for $95 per share in the market.Would you buy Chipotle stock? Why or why not?

b) Below are the details for a Chipotle bond trading in the market.(5 points)

Calculate the bid/asked spread in dollars for $100,000 par value based on the following information: Assume today is 12/1/2020

Maturity Coupon Asked Yield Bid Asked

12/1/20264.5% 4.62% 99.20 99.40

c) What is the meaning of your answer? DO NOT REITERATE the math.Explain the meaning.