Some multinational corporations and banks run recruiting talent programs that offer about two years of diversified rotations in various business units. This recruiting system is a great opportunity to experience of breadth of rules across the business. Before taking over a fixed position in the marketing team, there is a rotation to the finance department. particularly you were assigned to the treasury team whose functions are cash management and funding. your mentor is a seasoned senior analyst who has 7-year working experience at the corporation ABC. she will be involved in your training and will give you feedback on the projects you would participate.

3. Measuring the Level of the Stock Market: The senior analyst suggested that you follow equity markets closely because ABC's Board has decided to pay a dividend, despite many local corporations has decided not to pay dividends at all. A competing firm, BIC has announced that will not pay any dividends for the next 2 years. In year 3, BIC's dividend will be of $ 0.5 with a stable dividend growth rate of 3% thereafter (constant-growth). (10 points each question; total of 30 points) a) ABC company is listed in NYSE; however, it is not within the constituents of the Dow Jones Industrial Average (DJIA). Would you follow the S&P 500 index or the DJIA? Explain your answer b) Based on BIC's dividend policy for the next years, which is the stock fair price if your required rate is 6%? c) If BIC' stock market price is $ 18, would you BUY or SELL the stock