First Call, Inc., a smartphone company, plans to build a factory—one that costs $10 million if the real interest rate is 6 percent a year; a larger factory that costs $12 million if the real interest rate is 5 percent a year; or a smaller one that costs $8 million if the real interest rate is 7 percent a year. Draw a graph of First Call’s demand for loanable funds curve.

Storico co. just paid a dividend of $3.15 per share. the company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. if the required return on the company’s stock is 12 percent, what will a share of stock sell for today?