The need for extensive regulation of investment banking firms is limited due to the highly

Gamma Corp. is expected to pay the following dividends over the next four years: $7.50, $8.25, $15, and $1.80. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends, forever. If the required return is 14 percent, what is the current share price?

A. $35.20 B. $31.06 C. $38.18 D. $32.30 E. $34.90

A bottle of German wine costs €21 (euros) in Berlin. According to the purchasing power parity

theory, what would the bottle sell for in New York if it costs the New York company $1.25 per bottle to transport the wine to the United States? Assume the exchange rate is $1.32 per euro. A) $40.54 B) $39.50 C) $28.97 D) $27.22