1. TWM Inc. issued perpetual preferred stocks with par value of $120. The stock has a stated

dividend of 10 percent of par. Assume the required rate of return is 8%

1. What is the preferred stocks value?
2. If the required rate of return goes up to 15%. What is the new market value?

2. A stock just paid a dividend of $1.5 (i.e., D₀ = $1.5), and it will continue to grow at a constant

rate of 5.2% a year. If its required return is 11.2%. What is the stock s expected price 3 years

from today?

Please show all work and steps, but not in excel form. Thank you :)