1) Plasti-tech Inc. is financed 60% with equity and 40% with debt. Currently, its WACC is 10% and free cash flows are estimated to be $100,000 next year and $200,000 the following year with 5% growth forever. If there are 10,000 common stock shares outstanding, what is Plasti-tech's stock price per share?

2)What is the after-tax cost of preferred stock that sells for $10 per share and offers a $1.20 dividend when the tax rate is 35%?