What is the net income-what is the roa and roe

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1. Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $7.15 per share dividend 10 years from today and will increase the dividend by 1.06 percent per year thereafter. If the required return on this stock is 7 percent, what is the current share price?

2. Wakers, Inc., has sales of $37 million, total assets of $23 million, and total debt of $6 million. Required: (a) If the profit margin is 9 percent, what is the net income? (b) What is the ROA? (c) What is the ROE?

Reference no: EM132005933

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