1. There are a number of inside and outside monitors of the public company who could have prevented the Enron scandal. However, they all failed in monitoring Enron. Who might be those monitors on Wall Street? Why did they all fail in monitoring Enron.
2. The Down and Out Co. just issued a dividend of $2.91 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $55 a share, what is the company's cost of equity?
3. After all your necessary expenses have been or accounted for, you have $1,500 remaining in disposable income each month. Therefore, you decide to use this money in conjunction with your savings of $15,000 to purchase a house. Before looking for a house to purchase, you pre-qualify with a mortgage lender for a monthly payment of ent. maximum purchase price you can under these terms?