b) An Italian firm will pay a dividend of EUR 15.00 next year. The company has stated that it will maintain a constant growth rate of 4.00 percent a year forever. Most analysts agree that this is a reasonable growth rate. They want a range of returns from 10 to 14 percent. Estimate the price range that they are willing to pay for the stock! (3 points)

c) Top Gear Inc. is an American firm located in Los Angeles. The firm's common stock is sold for USD 20.00 per share in the NASDAQ. The firm has a cumulative voting feature. Today is the Top Gear Inc. director's election, and there are currently 10,000 shares outstanding. Shareholders see that there are three directors positions are available for the twenty possible nominated directors. Cathy-san or Hiramatsu-san are also shareholders of Top Gear Inc. Suppose that either Cathy-san or Hiramatsu-san wants to ensure that s/he gets a seat on the board. Calculate the cost to realize their wants! (4 points)