1. Find the value of a stock that is expected to pay a dividend next year of $2.20, and for which analysts forecast growth rates that will continue to be 5% a year into the foreseeable future. Assuming your required return is 12% to hold that company's stock, what is the current value?
2. Is a corporate bankruptcy a legitimate tool to be used by corporate management to enhance the value of the firm? Why do you hold this opinion? Please include a reference.