2. Sales numbers are determined by both a volume component and price component. Projecting prices depends on factors specific to the firm and its industry that might affect demand and price elasticity. Discuss whether it would be likely that the firm would be able to raise future prices for different types of business.

. As an analyst it is important when projecting sales to make estimates about future changes in sales volume. Compare how you might make estimates about future sales value for a company in different stage of life cycle.

4, Calculate the firm's cost of equity capital using the CAPM model.

6. Why a firms dividend policy is irrelevant? Discuss the key assumption in the theory.