QUESTION 32 Westside Tool Company is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 6% and the expected return on the market portfolio is 12%. Analysts expect the price of Westside Tool Company shares to be $29 a year from now. The beta of Westside Tool Company's stock is 1.2. Using a one-period valuation model, the intrinsic value of Westsyde Tool Company stock today is $31.13 $27.39 $34.52 $24.29 QUESTION 40 The market capitalization rate on the stock of Aberdeen Wholesale Company is 10%. Its expected ROE is 12% and its expected EPS is $5. If the firm's plowback ratio is 60%, its P/E ratio will be 22.22 14.29 7.14 16.67