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FINANCIAL MODELLING 4. Analysts expect that Bread Stick will earn $1.5 per share in the coming year and pay a dividend of $0.5 per share.

FINANCIAL MODELLING
4. Analysts expect that Bread Stick will earn $1.5 per share in the coming year and pay a dividend of $0.5 per share. Historically, the firms ROE has been 10%, and its required return on investments is 8%. What is the value of the stock? *
a. $85.67
b. $27.08
c. $51.00
d. $51.70
e. None of the above
5. Analysts expect that Bread Stick will earn $1.5 per share in the coming year and pay a dividend of $0.5 per share. Historically, the firms ROE has been 10%, and its required return on investments is 8%. What is the firm's growth rate *
a. 5%
b. -5%
c. 7%
d. 10%
e. None of the above

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