--Investors require an annual return of 14.0% on the stock

--Shares outstanding of 200,000

--The current year income statement for Trimax is below

--Comparable company (Comp 1, Comp 2, Comp 3, and Comp 4) share price and financial information is below

1) What is the yield to maturity on Trimax's bonds?

2) What is the price per share of Trimax's stock using the dividend discount model?

3) If it is reasonable to value a share of Trimax's stock at the average P/E of the comparable companies, what value would result?

4) If Trimax has a higher expected growth rate than the comparable companies, should Trimax have a higher or lower P/E ratio than the comparable companies?

Trimax		Current year
Revenue		$ 5,000,000			Share Price	Revenue	EBIT Margin	EPS
COGS		3,250,000
Gross profit		1,750,000		Comp 1	$ 25.00	$ 6,000,000	18.0%	$ 3.15
SG&A		750,000		Comp 2	33.00	7,500,000	16.0%	3.70
Depreciation		366,667		Comp 3	18.00	6,750,000	13.0%	2.25
EBIT		633,333		Comp 4	21.00	7,200,000	14.0%	3.00
Interest		100,000
Taxable Income		533,333
Taxes		133,333
Net Income		$ 400,000