You forecast that Dull company will pay a dividend of D₁=$40 at the end of this year. The dividend will decline in the second year (D₂=$20). After the second year, dividends will then grow at an annual rate of 10% (For example, D₃=$22, D₄=$24.2,...). What is the current fair price of the Dull stock when the required/expected return is 20%?

A. $168.06
B. $175.00
C. $188.89
D. $200.00
E. $206.67

Q3. loral corporation manufactures parts for an aircraft company. it uses a computerized numerical controlled (cnc) machining center to produce a specific part that has a design (nominal) target of 1.275 inches with tolerances of ± 0.020 inch. the cnc process that manufactures these parts has a mean of 1.285 inches and a standard deviation of 0.005 inch. compute the process capability ratio and process capability index, and comment on the overall capability of the process to meet the design specifications.