1 ) A preferred share of Xubuntu Corporation will pay a dividend of $7 in the upcoming year, and every year thereafter, i.e., dividends are not expected to grow. You require a return of 10.5% on this stock. Using the dividend discount model to calculate the intrinsic value, how much is this stock worth?

2. A company has an expected ROE of 17%. If it pays out 32% of its earnings as dividends, what will be its dividend growth rate? Enter answer in percents to two decimal places.