1. Which of the following industries is a good example of an industry in the maturity stage?

a. The pharmaceutical industry

b. the automobile industry

c. the biotechnology industry

d. the health care industry

2. What is the value of a stock which has a current dividend (D0) of $1.60 and is growing at the rate of 7%. The investor's required rate of return is 12%.

a. $26.75

b. $36.16

c. $39.30

d. $34.09

e. $41.70

19. We expect stock A price one year from now is $56, and during the year we expect to get $4 per share as dividend. Riskfree rate is 6%, expected market return is 11%, beta for A is 1.2. What is the intinsic value of stock A now? (you have to use CAPM to find required return).

a. 53.57

b. 48.41

c. 45.69

d. 52.87

e. 55.90

Thank you for your help.