1. The Crash Davis Driving School has an ROE of 15.9 percent and a payout ratio of 58 percent. What is its sustainable growth rate?
2. Given an interest rate of 5 percent per year, what is the value at date t = 7 of a perpetual stream of $3,400 payments that begins at date t = 15?
3. The Cavo Company has an ROA of 9.1 percent, a profit margin of 10.5 percent, and an ROE of 16.5 percent. What is the company’s total asset turnover?