1. Discuss main finance theory that explains the relationship between management and equity finance provider.
2. How should the committee address the isue of wich discount rate to use? What growth rate should be used?
3. An analyst follows X Company. An analyst also notes:
• X's most recent dividend was D 0=€0.26.
• A forecasted dividend growth rate of 6.0 percent per year.
• a required return on equity of 9.25 percent. ?
Calculate the Gordon growth model value for stock.?