1. What are two metrics to value cyclical stocks that are losing money on the bottom line? What are the pros and cons of these metrics?

2. Metrobank offers one-year loans with a 12 percent stated rate, charges a 1/2 percent loan origination fee, imposes a 10 percent compensating balance requirement, and must pay a 5 percent reserve requirement to the Federal Reserve. What is the return to the bank on these loans?

3. Boehm Incorporated is expected to pay a $3.00 per share dividend at the end of this year (i.e., D1 = $3.00). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 18%. What is the estimated value per share of Boehm's stock? Round your answer to the nearest cent. $____