1 A utility company pays $2.30 per share in dividends. If its cost of capital is 7% and the dividend is expected to grow at 2% per year, what is the value of the stock? Please write out how you would calculate this solution. Preferred Stock Model Problem a. If a firm has a dividend of $10 per year, and its required return is 10.3%, what is the value of the Preferred Stock? Please write out the how you would calculate this solution