Show your work and ALL calculations 1. Sun Corp had net income of $2.41/share last year, and it paid $1.63/share in dividends last year. A) What was its Dividend Payout Ratio last year? B) What was its Retention Rate last year? (Your answers should be a % carried to one place.) 2. If Sun Corp can earn 11% after tax on new investments, estimate how fast its net income can grow annually in the future. (Your answers should be a % carried to one place.) 3. Based on your answers to Q1 and Q2, is Sun Corp a start-up, a growth company, or a well-established mature company? (Pick one.) 4. Ionic Corp's stock is selling for $77/share. You expect dividends to be $1.21/share over the next year (Year 1), $1.30/share in Year 2 and $1.41/share in Year 3, and you anticipate the stock will be trading at $105/share at the end of Year 3. a. Draw a timeline assuming all cash flows occur at the end of each year. b. If you have estimated Ionic Corp's Cost of Equity to be 8.4%, what do you believe the true value of the stock is today? c. Given your answer to 4. b., what would you recommend to your clients? 5. Drug Loft is a private company that operates a regional drug store chain and believes this may be a good time to go public. Last year EBIT was $313 million, D&A was $72 million, CapEx was $88 million, and the increase in net working capital was $14 million. Given Drug Loft's tax rate of 30%, what was its Free Cash Flow