1. Suppose that the company XYZ is going to pay a dividend of $1.50 per share next year, and the dividend is expected to grow by 10% forever. If investors require a 13%, what should the value of XYZ’s stock be?
2. The Timber Ridge Company has the following relationships: Sales/Total assets = 2.29; ROA = 0.1080 What is Timber Ridge’s net profit margin?
3. Boulder Mountain Ski Company has total assets of $486,600,000 and a debt ratio of 0.28. Calculate the company’s debt-to-equity ratio.