Suppose today you are considering whether to buy Stock Theta,
and you want to do some basic analysis before buying the shares. By
reading the firm’s most recent Balance Sheet, you find the
following information: Net Income is $5,000,000, Total
Shareholders’ Equity is $25,000,000, Total Assets is $40,000,000.
From other publicly available sources, you further obtain the
following information: the most recent earnings per share (EPS) is
$3, the dividend payout ratio is 60%, and the firm’s beta is 1.4....