1. You own shares of ABC corporation. You will be paid $1.25 per share annually for the next five years. After that, the dividend will be $3.50 annually forever. Given a discount rate of 10%, what is the value of the stock today?
2. Assume that Belgium, one of the European countries that uses the euro as its currency, would prefer that its currency depreciate against the dollar. Can it apply central bank direct intervention to achieve this objective?