1. Forever, Inc.'s preferred stock has a par value of $1,000 and a dividend equal to 12.0% of the par value. The stock is currently selling for $616.00. What discount rate is being used to value the stock?

	20.49%
	19.48%
	21.41%
	18.14%
	16.45%

2. You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $8.60 and that dividends will grow at a rate of 5.0% per year thereafter. If you would want an annual return of 16.0% to invest in this stock, what is the most you should pay for the stock now?

	$56.44
	$82.09
	$53.75
	$78.18
	$85.42

3. You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $3.10. You have projected that dividends will grow at a rate of 5.0% per year indefinitely. The firm's beta is 1.60, the risk-free rate is 5.7%, and the market return is 14.3%. What is the most you should pay for the stock now?

	$21.44
	$22.51
	$15.93
	$16.73
	$24.59