Suppose that on further analysis you decide that after year 5 McDonald’s earnings and dividends will grow by a constant 4% a year. How does this affect your estimate of the value of McDonald’s stock at year 0?

Airline companies are interested in the consistency of the number of babies on each flight, so that they have adequate safety equipment. suppose an airline conducts a survey. over weekend, it surveys 6 flights from boston to salt lake city to determine the number of babies on the flights. it determines the amount of safety equipment needed by the result of that study.