Use decision trees when the sequence of conditions and actions is critical

ABC common stock is expected to have extraordinary growth of 20 percent per year for two years, at which time the growth rate will settle into a constant 6 percent. If the discount rate is 15 percent and the most recent dividend was $2.50, what should be the current share price?

A) $47.77 B) $37.39 C) $31.16 D) $33.23

Which of the following is an incorrect statement regarding an activity associated with the application of strict liability theory?

A) The law allows people to engage in such an activity. B) The law determines liability for such an activity based on the defendant's negligence. C) Inherently dangerous activities include blasting in a populated area. D) Inherently dangerous activities include keeping non-domesticated animals.