1

A share of preferred stock with an annual dividend of $12 has an expected return of 4% annually. What is the current estimated price of the preferred stock?

2

You forecast a company's dividends for the next four years. In Year 1, you expect to receive $1.00 in dividends. In Year 2, you expect to receive $2.00 in dividends. In Year 3, you expect to receive $3.00 in dividends. In Year 4, you expect to receive $4.00. After Year 4, dividends are expected to grow at 5%. The rate of return for similar risk common stock is 7%. What is the current value of this company's stock?

3

What is the dividend yield for the company in Question 2?