CHEM 131 Midterm: Exam 3 No Solutions Fall 1997

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You have 75 minutes to take this exam. This exam will be graded out of 100 points. The number in parentheses for each question is the amount of points assigned to the question. The exam has six questions and ten pages, including this page and a page of scratch paper at the end. You own a company that makes whiteboards for classrooms. For the year that just ended, the after-tax profits were mm. You have consistently paid yourself 60 percent of the profits to support your large extended family, who are all unemployed. You"ve invested the remaining 40 percent in capital improvements. The bank uses the total payout model, combined with your historical payout ratio, and estimates the price as . 4615mm. 2: (6 points) one member of the team of analysts from the bank disagrees with the estimated price of . 4615mm.

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