1. OKR plans to pay equal amount of dividends for the next five years; then increase it by 9% for year 6, and 6% thereafter. The current stock price is $120. Calculate the expected dividend at year 4 if the required return is 10%.
2. Summarize the causes of the 2008 financial crisis, and show how they reflect Hyman Minsky’s “financial instability hypothesis.”
3. Toyota has preferred stock outstanding that pays a $1.00 quarterly dividend and has a required return of 12% APR. What should the stock be worth today? (Show your work)