1.

Ayden, Inc., has an issue of preferred stock outstanding that pays a $5.55 dividend every year, in perpetuity. This issue currently sells for $92 per share.

What is the required return? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Required return

%

2.

The Germinating Flower Co. has earnings of $2.00 per share. The benchmark PE for the company is 13.

What stock price would you consider appropriate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Stock price

$

What if the benchmark PE were 16? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Stock price

$

3.

You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today