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1. A company has a taxable income of $1760 with a tax rate of 38%. Owners Equity is 400 in stock, 200 in capital surplus, and 200 in retained earnings. What is the return on equity (ROE)?,A. 138%,B. 125%,C. 123%,d. 136%,,2. Company XYZ is expected to grow at 10% annually forever, its dividend at the end of this year is expected to grow to $2.50, and it’s required rate of return is 17.5 %,A. What is it’s intrisic value?,B. If the current price is equal to it’s intrinsic value, what is next year’s expected price?,C. Assume you buy the stock now and sell it after receiving the $2.50 dividend one year from now. What would be your anticipated capital gain in percentage terms? What is the dividend yeild and the holding period return? please show all work

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