1. Please describe the components of an operating budget and how the different components contribute to the overall budget. (200 words)
2. Kelly Enterprises' stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 9.50% per year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now?
3. Do you think the widespread belief in the Efficient Market Hypothesis caused investors to underestimate the likelihood of a crisis?