Question: 1. Given the interest rate is 21.1% per year compounded quarterly, calculate the monthly interest rate. 2. ABC's current EPS is $19.6. Its ROE is

1. Given the interest rate is 21.1% per year compounded quarterly, calculate the monthly interest rate.

2. ABC's current EPS is $19.6. Its ROE is 11.2% and shareholders require a return of 12%. What is the share price if ABC has a practice of paying out 32% of its earnings? round to 4 decimal places

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