1. Timeless Corporation issued preferred stock with a par value of $1,000. The stock promised to pay an annual dividend equal to 11.0% of the par value. If the appropriate discount rate for this stock is 19.0%, what is the value of the stock?

	$475.32
	$1,727.27
	$1,244.98
	$578.95
	$488.63

2. Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $7.70. You believe that dividends will grow at a rate of 25.0% per year for two years, and then at a rate of 5.0% per year thereafter. You expect the stock will sell for $35.09 in two years. You expect an annual rate of return of 23.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now?

	$45.17
	$53.49
	$38.97
	$62.17
	$67.30