1. Tresnan Brothers is expected to pay a $3.50 per share dividend at the end of the year (i.e., D₁ = $3.50). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, r_s, is 20%. What is the stock's current value per share? Round your answer to two decimal places.

$

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2. Holtzman Clothiers's stock currently sells for $20.00 a share. It just paid a dividend of $3.50 a share (i.e., D₀ = $3.50). The dividend is expected to grow at a constant rate of 10% a year.

a. What stock price is expected 1 year from now? Round your answer to two decimal places. $ b. What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

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3.

Farley Inc. has perpetual preferred stock outstanding that sells for $36 a share and pays a dividend of $5.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.

%