P7-14: common stock value: variable growth home place hotels inc. is entering into a 3-year remodeling and expansion project. the construction will have a limiting effect on earnings during that time, but when completed, it should allow the com-pany to enjoy much improved growth in earnings and dividends. last year, the com-pany paid a dividend of $3.40. it expects zero growth in the next year. in years 2 and 3, 5% growth is expected, and in year 4, 15% growth. in year 5 and thereafter, growth should be a constant 10% per year. what is the maximum price per share that an investor who requires a return of 14% should pay for home place hotels common stock?

Kayla and jada are roommates in new york city. both kayla and jada recently received pay raises. kayla now buys more movie tickets than before, but jada buys fewer. kayla behaves as if movie tickets are goods and jada's income elasticity of demand for movie tickets is

The management of a private investment club has a fund of $250,000 earmarked for investment in stocks. to arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high risk (x), medium risk (y), and low risk (z). management estimates that high risk stocks will have a rate of return of 15%/year; medium risk stocks, 10%/year; and low risk stocks, 6%/year. the amount of money invested in low risk stocks is to be twice the sum of the amount invested in stocks of the other two categories. if the investment goal is to have a rate of return of 9% on the total investment, determine how much the club should invest in each type of stock. (assume that all the money available for investment is invested.)

Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.