1. What are Founders' shares? (100-150 words).

2.Any change in a stock's beta is likely to affect the required rate of return on the stock, which - of course - implies that a change in beta will likely have an impact on the stock's price, other things held constant. Is this statement true or false? Explain

3. ABC Corporation just paida dividend of D₀= $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.15, the required return on the market is 9.50%, and the risk-free rate is 3.50%. What is the company's current stock price?