By using the Dividend Discount Model, a. For 2020, Gajah paid a dividend of $0.14 per share. If the company expects to grow at a rate of 5% for the next 3 years, 4.5% the next 2 years and after that 3.25% for the long run, how much should an investor expect to pay for the stock?
b. If the current stock price of Gajah Technologies is $2.1232, would you recommend your investors to acquire the company’s shares?

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)