1. The market capitalization rate on the stock of Aberdeen Wholesale Company is 10%. Its expected ROE is 12%, and its expected EPS is $5. If the firm's payout ratio is 60%, what is the value of the stock assuming a constant growth of dividends?
2. Explain which information you would need to take into consideration when deciding to receive $5,000 today or $5,500 one year from today?
3. Ultimately, states will be responsible for 10 percent of the cost of the expansion in their states. How will the states handle this cost.