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1. Which one of the following sets of dividend payments best meets the definition of two-stage growth as it applies to the two stage growth:.....

1. Which one of the following sets of dividend payments best meets the definition of two-stage growth as it applies to the two stage growth:..... (a) decreasing dividends for 6 years followed by one final liquidating dividend payment.... (b) Dividends payments which increase by 2,3 and 4 percent respectively for 3 years followed by a constant dividend thereafter....(c) Dividend payments which increase by 10 percent per share for 5 years followed by dividends which increase by 3% annually thereafter. 2. If a company currently has a high and is expected to stabilize in the future. What is the appropriate valuation model to use: (a) Multistage DDM( 2-stage or 3-stage)...(b) P/E...(c) Infinite Growth DDM. 3. Rose Hill Trading Company is expected to have EPS in the upcoming year of $6. The expected ROE is 18%. An appropriate required return on stock is 14%. If the firm has a retention rate of 70%. It's intrinsic value should be: (a) $20.93 (b) 69.77. (c) $128.57. k 4. The average duration of unemployment and changes in the consumer price index for services are : (a leading (b) Coincidental (c) Lagging

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