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Kraft Food current stock price is 53.50. Kraft Food ROE today is 13.25%. The Plowback ratio for Kraft Food is .375%. Three years later Kraft

Kraft Food current stock price is 53.50. Kraft Food ROE today is 13.25%. The Plowback ratio for Kraft Food is .375%. Three years later Kraft Food is being acquired by Heinz Ketchup. In an external audit it was found that out that Kraft food could no longer maintain a Plowback ratio of .375%. Kraft Food released the following new information ROE of 9.25%, payout ratio .275%, market rate of 7.15%.

  1. What is the EPS and dividend growth in years 2-7?
  2. What is the current stock price? Why does the plowback ratio play a pivot role?

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