1. Powell Motors has a P/E constant of 15 and 140 million shares outstanding. Analysts forecast net income to be $257.6 million in the next fiscal year. What is the fair price for a share of Powell Motors?
2. Investors expect Bozo Inc. to grow at a constant 3% indefinitely. If the next dividend is expected to be $5.24 and the required return is 8.8%, what is the market price of Bozo?