1. Toyota stock currently trades for $44 per share. The price to earnings ratio is 32 and the firm has a tax rate of 35%. Calculate the earnings per share. (Round to 2 decimals)
2. Suppose your friend is offering a $10,000. The interest rate quoted on this loan is 0.5% per month. Calculate the effective annual rate on this loan. (Enter percentages as decimals and round to 4 decimals)
3. "Cash flow methodology should distinguish between a new capital intensive business and a more mature operation." Discuss.