Cash Flow Data for Interceptors, Inc.

	2005			2006			2007			2008
Cash	$	38		$	46		$	54		$	62
Cash from operations	$	130		$	128		$	125		$	120
Net capital spending	$	146		$	141		$	146		$	151
Cash from financing	$	24		$	21		$	29

What must cash flow from financing have been in 2008 for Interceptors, Inc.?

$36

$8

$31

$39

Sanders, Inc., paid a $4 dividend per share last year and is expected to continue to pay out 60% of its earnings as dividends for the foreseeable future. If the firm is expected to generate a 12% return on equity in the future, and if you require a 14% return on the stock, the value of the stock is _________.

$63.06

$22.30

$45.57

$40.76