1. Mr. Finance, Inc. announced yesterday that their next annual dividend will be $4 and that future dividends will be increasing by 7 percent annually. How much are you willing to pay for one share of this stock if your required return is 16 percent?
2. Lee & Lee stock is valued at $75 a share. The company pays a constant dividend of $3. What is the required return on this stock?
3. What is the major difference between the financial risks to providers of fee-for-service and capitation?