Mr. davies is turning 65 next month. he would like to enroll in a medicare health plan, but does not want to be limited in terms of where he obtains his care. what should you tell him about how a medicare cost plan might fit his needs?

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?