Q3 Big Auto has a ROE of 9.4%. Its earnings per share are $1.16, and its dividends per share are $0.53. Estimate Big Auto's growth rate.

Q4 Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $38.84 per share. She expects the price of the stock to rise to $45.74 over the next 3 years. During that time she also expects to receive annual dividends of $4.57 per share. a. What is the intrinsic worth of this stock, given a required rate of return of 9%? b. What is its expected return?