1. LSP Co. has an issue of preferred stock outstanding that pays a $5.50 dividend every year in perpetuity. If the required return of this stock is 5%, what is the selling price per share? a) $110 b) $112 c) $113 d) $114 e) None of the above 2. Saman Motors is expected to grow at a constant rate of 6% a year into the indefinite future. Its next dividend is expected to be $2.25 a share. The rate of return on stocks similar to Saman is about 11%. What should a share of Saman Motors sell for today? a) 543 b) $45 C) $46 d) $50 e) None of the above