Finding the Dividend Hollin Corporation stock currently sells for $50 per share. The market requires a 14 percent return on the firm’s stock. If the company maintains a constant 8 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

20 Valuing Preferred Stock Mark Bank just issued some new preferred stock. The issue will pay a $9 annual dividend in perpetuity, beginning six years from now. If the market requires a 7 percent return on this investment, how much does a share of preferred stock cost today?

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