1 suppose chipotle has an roe of 15 an eps of 125 and, Ask an Expert

Finance

1. Suppose Chipotle has an ROE of 15%, an EPS of $1.25, and elects to plowback 25% of its earnings. Expected return (r) is 5%. What is the stock price?

a. $50

b. $75

c. $100

d. $125

2. Which of the following would be considered bullish (indicative of an optimistic market)?

a. Buying credit default swaps

b. The FED is selling treasury bonds

c. Venture capitalists are unsuccessful in converting ratchets into equity

d. Defined contribution funds are decreasing

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92772389

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