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appropriate required return on the stock is 11%. If the firm has a plowback ratio of 60%, the dividend in the coming year should be: g = .125 X .6 = 7.5%; $2.50(1.075) = $2.69 Essay question (12 points) Discuss some reasons why an investor with a long time horizon might choose to invest in common stocks, even though they ha ============================================ FIN 402 Week 1 Assignment Capital Markets and Investment Banking Process Paper For more course tutorials visit www.uophelp.com FIN402 Week 1 Assignment Capital Markets and Investment Banking Process Paper ============================================ FIN 402 Week 1 DQ 1 For more course tutorials visit www.uophelp.com What are capital market instruments? How are they used? Which is most important? Explain your answer. ============================================