1. Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 8% per year. If D0 = $3 and rs = 14%, what is the value of Martell Mining's stock? Round your answer to two decimal places.

2. Fee Founders has perpetual preferred stock outstanding that sells for $50.00 a share and pays a dividend of $4.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.

3. Thomas Brothers is expected to pay a $2.9 per share dividend at the end of the year (that is, D1 = $2.9). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, rs, is 12%. What is the stock's current value per share? Round your answer to two decimal places.