Q1.Steady Company pays annual dividends and just paid a dividend of $1.00. You assume Steady Companys dividends are expected to grow by 15.00% per year indefinitely and that the required return is 10.00% p.a. Based on this information, what is the price of a Steady Company share?

Q2.

If F + X = I + D then it follows that F = I - X + D and F will be negative when

a.dividends are to be paid from the surplus remaining after the investment decision

b.no dividends are to be paid and firms have more than sufficient cash flow to cover all investments.

c.no dividends are to be paid and the positive funds from operations are insufficient to make new investments

d.None of the above.