Maurice has the following utility function: U(X, Y) = 20X + 80Y - X 2
- 2Y2
,
where X is his consumption of CD’s, with a price of $1, and Y is his consumption of movie
videos, with a rental price of $2. He plans to spend $41 on both forms of entertainment.
Determine the number of CD’s and video rentals that will maximize Maurice’s utility.

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?