1. Nonconstant Growth/ Two Stage Model Firm X just paid an annual dividend of 2.35 per share. This dividend is expected to grow at a rate of 19% per year over the next three years and then slow to a rate of 4% per year from that point forward. The required return on firm X's shares is 8 percent. a. Draw a timeline of dividend stream b. Estimate the intrinsic value of firm X's shares today. Suppose bus travel is an inferior good, and the demand curve for bus travel is downward sloping 1. Design an indifference curve-budget line diagram showing the substitution and income effects created when the price of bus travel falls. In your diagram, place bus travel on the horizontal axis and all other goods on the vertical axis. 2. What is the sign of the income elasticity of demand for bus travel? Is it positive or negative? 3. Can you tell from your diagram in (1) that the income elasticity of demand for bus travel is positive or negative? Explain You need to upload your answers to this