1. Alberta industrial Ltd. plans to issue a $100 par value perpetual preferred stock with an annual dividend of $5.00 per share. if the required return is 10.59% at what price should this preferred stock sell for?

2. Canada Corp paid a $4 dividend last year. if the dividend is expected to grow in perpetuity by 3% and your required rate of return is 15%, what is the max price you would pay for this stock?