1. Predicting earnings per share (EPS) of a company is important because, A. It provides an indication of the potential of growth of a company B. The price of the company stock may react to an earnings surprise C. A and B D. Financial analysts are always right when they come up with EPS estimates
2. The Torbert Corporation paid $1.00/share in dividends last year. Due to a new product, Torbert's CEO expects dividends to grow at 12% for two years. At that time the competition will have copied the product and growth will drop to 6%. Given a required return of 11%, what is Po?
3. What annual rate will you need to earn if you want $225,000 in eight years and deposit $100,000 today in an account paying interest daily? A. 2.78% B. 3.89% C. 10.67% D. 10.14%.