1. A firm is expected to pay a dividend of $2.75 next year and $2.90 the following year. Financial analysts believe the stock will be at their price target of $50 in two years. Compute the value of this stock with a required return of 12.7 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
2. Why do we do risk management analysis on futures/securities?
3. Why do we do technical analysis on futures/securities?