1. A stock is expected to pay a dividend of $5.80 next year. Thereafter, dividend growth is expected to be 3.0% a year forever. If the market capitalization rate is 9%, what is the stock price?
2. Give an example of a type of project that requires a less detailed analysis in the capital budgeting process and one that requires a more detailed analysis in the capital budgeting process. Explain your rationale for each type of project analysis. Explain why you chose each project.