1. Black Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The required rate of return on the stock is 11.50%. What is the stock's expected price 5 years from now?

2. Nolen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50% per share. If the required rate of return on this preferred stock is 6.5%, at what price should the preferred stock sell? The par value of the preferred stock is $100.

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