1. Carla Vista Corp. paid a dividend of $2.70 yesterday. The companys dividend is expected to grow at a steady rate of 5 percent for the foreseeable future. If investors in stocks of companies like Carla Vista require a rate of return of 19 percent, what should be the market price of Carla Vista stock? (Round dividend to 3 decimal places, e.g. 3.756 and round final answer to 2 decimal places, e.g. 15.25.)

Market Price: $_____

2. The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.75 on this stock. What is the current price of this preferred stock given a required rate of return of 14.0 percent? (Round answer to 2 decimal places, e.g. 15.25.) Current Price: $_____

3.Each quarter, Sandhill, Inc., pays a dividend on its perpetual preferred stock. Today the stock is selling at $64.00. If the required rate of return for such stocks is 17.50 percent, what is the quarterly dividend paid by this Sandhill? (Round answer to 2 decimal places, e.g. 15.25.)

Quarterly dividend paid $______