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will rate 16. The net profit margin of Pertamona Corporation is 7.30%, its total assets are $1,800,000, and its sales are $2,520,000. Debt is 40%

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16. The net profit margin of Pertamona Corporation is 7.30%, its total assets are $1,800,000, and its sales are $2,520,000. Debt is 40% of total assets. The company's ROE is a. 6.33% b. 8.50% c. 10.22% d. 12.67% e. 17.03% 17. Santos Corp. does not currently pay a dividend. You expect the company to pay a $3 /share dividend at the end of year 5 , and you expect the dividends to grow perpetually at 5% per year thereafter. If the required rate is 16%, how much is the stock currently worth? a. $27.27 b. $22.43 c $17,47 d. $15.06 e. $12.98 18. The three major factors that determine the market value of a company's common stock are: a) Cash flow, risk, and profit b) Cash flow, profit, and timing of cash flow c) Cash flow, risk, and shareholder's wealth d) Cash flow, risk, and timing of cash flows e) Revenues, expenses and risk

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