Afriend is trying to start a record label but becomes very worried because he feels that a few powerful record companies have created an oligopoly where new competitors cannot enter the market. what could you offer him as advice in response to this?

Storico co. just paid a dividend of $3.15 per share. the company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. if the required return on the company’s stock is 12 percent, what will a share of stock sell for today?