1. A stock is expected to pay a dividend of $3.51 at the end of the year. The required rate of return is rs = 12.2%, and the expected constant growth rate is g = 3%. What is the stock's intrinsic value?

2. Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $8.72 per share. If the required return on this preferred stock is 9.48%, the intrinsic value of the preferred stock is $ (Show pennies)