1. Green Forest Recycling stock has an expected return of 16.92 percent and pays annual dividends that are expected to grow annually by 3.3 percent forever. The firm’s next dividend is expected in 1 year from today. If the firm’s dividend is expected to be 15.18 dollars in 7 years from today, then what is the current price of the stock?
2. How does inflation distort ratio analysis comparisons for one company over time (trend analysis) and for different companies that are being compared? Are only balance sheet items or both balance sheet and income statement items affected?