subject firm's suppliers and customers. D 4. In which of the following life-cycle phases are price wars among rival firms most likely to be absent? 8 A 5 A. Mature. B. Decline. C. Growth 5. The yield-to-maturity (YTM) of 20-year Treasury Bond is 3.00% and the YTM of 20-year TIPS is 0.98%. Economists expect the US labor supply growth rate (per annum) to be 1.0% while the labor productivity growth rate (per annum) to be 2.0%. A forward looking estimate expects dividend yield (per annum) of 2.1% and reinvestment return (per annum) of 0.1%. The overall market valuation is efficient. Given the information above, the macroeconomic model estimate of US equity market risk premium is closest to: A. 4.26% B. 7.26% C. 6.26% 6. According to the CAPM, Toyata Inc.'s required return of equity is 8.5%. Currently, the company's stock price is $128. An analyst estimates that the one-year target price of Toyata is $135. She further forecast that Toyata will pay a cash dividend of $3.0 per share over the coming year. According to the analysts' forecast, Toyata's stock return is most likely to A. perform the same as the benchmark. B. outperform the benchmark return over the coming year. C. underperform the benchmark return over the coming year