One year ago, Castle Burgers, Inc., had a book value per share of $16.08. The earnings per share for this past year were $2.68. What was the residual income per share if the earnings growth rate was 5 percent and the required discount rate was 14 percent?

		$.38
		$.40
		$.43
		$.49
		$.52

The president of Whistle Stop Cafs recently announced that the corporation will be liquidating. The company plans on paying a $5 dividend next year and a final dividend of $22.50 two years from now. If the discount rate is 16 percent, what is one share of this stock worth today?

		$18.78
		$19.51
		$20.03
		$21.03
		$24.40