1. Local contractors who handle home remodeling and other building projects turn to Home Depot or Lowe’s for many products, tools, and materials. Describe how these retailers could adopt a solutions marketing focus to serve those customers.
2. Parminder Partners is expected to generate free cash flows of $4 million per year for the next 5 years, after which they are expected to grow at a rate of 3% per year. The firm currently has $2 million of cash, $7 million of debt, and a cost of capital of 8%. If the firm has 10 million shares outstanding, what is Parminder's expected current share price?