1. Evaluate this statement: "Firm A will decrease in value because they invested too much of this year's cash flow into building a new factory."
2. The current market price for ABC is $98 per share. Initial margin is 50%, maintenance margin is 35% and there is no margin interest. ABC pays annual cash dividends of $4.50 per share.
3. Your grandfather invested $1,000 in a stock 33 years ago. Currently, the value of his account is $312,000. What is his geometric return over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Geometric return