1. A firm issues preferred stock with a dividend of $3.36. If the appropriate discount rate is 6.18% what is the value of the preferred stock?

Answer format: Currency: Round to: 3 decimal places.

2. Caspian Sea is considering raising $38.00 million by issuing preferred stock. They believe the market will use a discount rate of 9.07% to value the preferred stock which will pay a dividend of $2.07. How many shares will they need to issue?