JJ Industries retains 55% of its income. Last year's EPS was $2.15 and ROE is 13%. Investors require a 11% return on this stock. What is the intrinsic value of the stock?

$35.21

$34.42

$36.87

$39.49

Value and Price You plan on holding a stock for two years. The annual dividend per share is $0.70 and you believe you will be able to sell the stock in two years for $37.00. You believe this stock should pay a 13% rate of return per year. If the stock is currently priced at $34.00 the stock is __________________.

undervalued by less than 5%

overvalued by more than 5%

overvalued by less than 5%

undervalued by more than 5%

P/E and Growth Daisy Pixie Stix pays out 65% of its earnings as dividends. The firm has been earnings $0.15 cents per dollar of equity invested in the firm and investors require a 11.75% return. The last annual earnings were $2.00 per share. What is the P/E ratio of the stock?

19.68

10.00

31.52

18.67