1.) Jonesboro Corporation issued preferred stock with a stated dividend of 10% of par. Preferred stock of this type currently yields 8%, and the par value is $100. Assume dividends are paid annually.

a) What is the value of Jonesboro Corporations preferred stock? Round your answer to the nearest cent.

b) Suppose interest rate levels rise to the point where preferred stock yields 13%. Now what would be the value of Jonesboros preferred stock? Round your answer to the nearest cent.

2.) Thress Industries just paid a dividend of $2.50 a share (i.e., D0 = $2.50). The dividend is expected to grow 4% a year for the next 3 years and then 11% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round intermediate calculations. Round your answers to the nearest cent.

D1 = $

D2 = $

D3 = $

D4 = $

D5 = $