1. The expected dividend per share is $1.50, with a growth rate of 5% per year. Calculate fair value if you require 10% return on investment.

2. If expected dividend per share is $1.50 and earnings per share is

$ 4.00 with a growth in earnings of 6% and a required return of 10%,

calculate the price earnings ratio.

3. a) If the price earnings ratio PE that you have calculated for a stock is 9.375 and you observe that it is currently selling at a PE ratio of 7 should you be a buyer or a seller?

I would be a buyer, because.

I would be a seller because..

4. If the payout ratio is 30% and net profit margin is 6.5% with a growth rate of 6%, calculate price to sales ratio if you require a 8% return on investment.

5. a) Calculate price to book value if the payout ratio is 30%, ROE is 10% growth in earnings is 6% and the required return is 10%.

6. Calculate the fair value based on the following information: Current dividend = $.90 = D0 Normal growth rate = 8% Super growth rate = 16% Duration of the super growth rate = 9 years Required return 13% 7. Use the FED Model for calculating the price with the following information. EPS of $3.5; bond yield of 6% (AA quality); growth in earnings of 4%. Assume C=0.10. 8A. What you have learned about Fundamental Analysis of Valuation of common stock. 9B. How would you apply fundamental approach to valuation for MacDonalds?

1. The expected dividend per share is s1.50, with a growth rate of sniper year. Calculate fair value ifyou require 10% retarm 2. If expected dividend per share is SI.50 and eamings per share is S4.00 with a growth in eamings of 6% and a required teturn of 10%. calculate the price earnings ratio. 3. a) If the price earnings ratio PE that you have calculated for a stock is 9.375 and you observe that it is current tly selling at a PE ratio of 7 should you be a buyer or a seller? would be a buyer, because. I would be a seller because 4. If the payout ratio is 30% and net profit margin is 6-s% with a growth rate of calculate price sales ratio if require a8% return 5 a) Calculate price to book value if the payout ratio is 30%,ROE is 10% growth in eamings is 6% and the required return is 10% 6 calculate the far value based on the following Current dividend Duration the waper powth are information. Ers 315, bond yield ofen, GAA