Question: 1. What dividend yield would be reported in two years in the financial press for a stock that currently pays a $1.50 dividend per quarter,

1. What dividend yield would be reported in two years in the financial press for a stock that currently pays a $1.50 dividend per quarter, has a return on equity of 18% and earnings per share of $7.75 and a projected stock price in two years of $40?

A. 15%. B. 16.5% C. 16.2% D. 4%.

2. Allen Co. has the following data for 2017, Sales of $50 million, Net Profit Margin of 10%, an- nual Depreciation of $1.5 million, projected Capital Expenditures of $1 million, projected Working Capital investment of $1.1 million and an inflation rate of 3%? The firm has no debt and you are an analyst preparing a five-year free cash flow pro forma and the free cash flow in year 2019 of the pro forma is?

A. $4.532 million. B. $4.667 million. C. $ 2.90 million. D. $3.07 million.

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