Net Profit: $5 million; Sales: $100 million; Total Assets: $50 million; Equity $22.73 Million; Earnings Per Share (EPS): $3.00; Dividends Per Share: $1.00.

What is BFC's return on equity and the estimated sustainable growth rate?

In general, how would the growth rate and payout ratio of value firms be different from growth firms? Explain why.

W is an analyst covering BHP, one of the biggest companies in the ASX,

while S is an analyst covering CTM, a very small, and relatively unknown company

also listed in the ASX. Explain who is more likely to uncover mispricing, and why.

What will be the risk associated with investing in BHP or CTM?