1. James makes $180,000 a year ($15,000 a month). He pays 27% in taxes and his living expenses are $8,000 a month. He wants to invest the remaining for 30 years at 5%. How much will his portfolio be after 30 years? NOTE that he contributes every month into his portfolio.
2. What are the similarities and differences between the two tools for designing business models?
3. What is the intrinsic value of a stock that has an expected dividend at t 1 of $3.50. Assume that the dividend grows at 40% during the first stage which ends at t-3. For the second stage you expect that the dividend does not grow at all (zero growth). Use a required rate of return of 22%.