IT&M, Inc., a large conglomerate, has decided to acquire another firm. Analysts are forecasting that there will be a period (2 years) of extraordinary growth (20%) followed by another 2 years of unusual growth (10%), and that finally the previous growth pattern of 5% annually will resume. If the last dividend was $4 per share and the required return is 15%, what should the market price be today?

Which of the following makes a true statement about the relationship between government and financial institutions? government and financial institutions do not interact with each other. financial institutions like the u.s. treasury must approve increases in the government deficit. government can pass laws to limit what financial institutions can charge in interest and fees. financial institutions like local banks must approve interest rates set by the federal reserve.