A firm is considered a dividend aristocract if it has been increasing its dividend consistently for the past 25 years or longer. Consider such a firm that has increased its dividend an average of 1.5% per year for over 25 years and is expected to continue to do so in the future. If the most recent dividend paid by this firm is $2.10 and the required rate of return for investing in the firm is 12.3% what is the fair value of the firm stock

You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase