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