1. A preferred stock from Hecla Mining Co. (HLPRB) pays $4.70 in annual dividends. If the required return on the preferred stock is 7.70 percent, what is the value of the stock? Please show the formula broken down with each step in kindergarten steps.

2. A firm does not pay a dividend. It is expected to pay its first dividend of $0.45 per share in two years. This dividend will grow at 11 percent indefinitely. Use a 12.5 percent discount rate. Compute the value of this stock.