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A home construction company want to expand to a new city. They are unsure how many new homes they will build and how much they

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A home construction company want to expand to a new city. They are unsure how many new homes they will build and how much they will charge to build each home. If the market is hot, they will be able to build more homes and charge more per home. If the market is cold, they will sell fewer homes and will have to charge a lower price. They run soparate NPV analysis for the hot and cold markets. This is an example of: Expected Value Real Options Terminal Value Scenario Analysis QUESTION 4 You want to invest in Microsoft Corp. Today, their stock price is $34. You know their next dividend is $1.9. If the discount rate for Microsoft is 12%, what is the breakeven dividend growth rate? (answer in percent. ex for 0.0212 answer 2.12)

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