1. Apocalyptica Corp. pays a constant $24 dividend on its stock. The company will maintain this dividend for the next 6 years and will then cease paying dividends forever.
Required:
If the required return on this stock is 14 percent, what is the current share price?
$106.39
$91.46
$93.33
$97.99
$144.00
2. Besides Skateboarding, UIC was also concerned with the high frequency if automobile accidents involving the residents at UIC's Senior Citizen Retirement Community and Nursing Home. UIC hired many different experts who found that the hand, eye, and foot coordination and reaction times of those over 75 years old is significantly diminished and causes an unacceptable increase in automobile accidents. Therefore, UIC passed a statute that outlawed persons over 75 years old from operating a motor vehicle. This law will survive constitutional attack if it passes the ____________ test.
a. CLJ 210 Midterm
b. strict scrutiny
c. high scrutiny
d. rational basis
e. intermediate scrutiny