1. What is the value of a common stock that just paid a $4.50 dividend, and has a constant perpetual growth rate of 5% if the discount rate is 10%? $33.75 b. $112.56 $94.50 d. $118.13 a. C. 2. ABC Corp. has an issue of preferred stock outstanding that pays an annual dividend of $10.00. If the discount rate for the stock is 14%, what is the stock's value? $71.43 b. $57.14 $9.12 d. $36.93 a. c. 3. A company's dividends are expected to decline at a rate of 5 percent annually for ever. Assume that R=11 percent and Do=$2.00. What will be the price of the company's stock three years from now? $27.17 b. $10.18 $11.32 d. $24.27 a. c