For each company, identify the most directly useful covered Chapter 6 valuation approach and briefly justify your choice.a) A mature utility pays stable dividends expected to grow at a constant long-run rate.b) A consumer-products firm pays dividends that are expected to grow rapidly for three years and then settle to a lower perpetual rate.c) A young company pays no dividends and currently has negative accounting earnings, but it generates positive FCF and has sufficient information to estimate an asset beta and long-run FCF growth.d) A mature company has stable positive earnings and cash flow and a strong set of comparable firms with established P/E and P/CF multiples.

Three stocks form a value-weighted index:StockShares OutstandingBeginning PriceEnding PriceArbor Corp.6 million$36$40Bayside Inc.10 million$24$26Canyon Co.4 million$75$72a) Calculate the total beginning market value of the index portfolio.b) Calculate the total ending market value.c) Calculate the index return. If the index level was 100.00 at the beginning of the period, calculate the ending index level.d) Suppose Canyon completes a 2-for-1 stock split at the end of the period. Explain why the split by itself should not change a value-weighted index.

Lakeview Manufacturing has a return on equity of 15% and pays 40% of earnings as dividends. Assuming the sustainable-growth relationship applies, calculate the firm’s a) retention ratio and b) sustainable growth rate.

Ironwood Transit reports EBIT of $25 million. Its tax rate is 24%, depreciation is $6 million, capital spending is $4 million, and net working capital increased by $1 million. Calculate the firm’s free cash flow for the year.

A price-weighted stock index contains only two stocks:StockBeginning PriceEnding PriceHarbor Co.$62$68Summit Inc.$118$108Calculate:a) The beginning index level.b) The ending index level.c) The percentage return on the price-weighted index.

UMD wants students to compost more food waste. Rather than simply publishing information, the university provides convenient bins, changes signage, creates incentives, and designs a campaign specifically intended to increase actual composting behavior. This MOST directly represents:

Frost River develops credible evidence showing that one redesigned product has a smaller environmental impact. Consumers find the technical evidence confusing and largely ignore it.Which response MOST closely follows the marketing implication of Chapter 3?

Consumers have favorable attitudes toward a sustainable detergent and believe friends would approve of buying it. However, many think it is difficult to find and inconvenient to purchase. Within the Theory of Planned Behavior, which factor appears weakest?

UMD creates a poster that says: “Only 18% of UMD students recycle consistently!” According to SHIFT, why might this message unintentionally make things worse?

A shampoo manufacturer uses a legal ingredient that scientists believe may damage aquatic ecosystems. Management responds: “If it is legal, then there is no marketing ethics issue.” Which course idea MOST directly challenges this statement?