1. You are interested in buying the preferred stock of a bank that pays a dividend of $2.20 every quarter. If you discount such cash flows at 10 percent, what is the value of this stock?

2.

Sheridan Corp, is expected to grow rapidly at a rate of 35 percent for the next seven years. The company's first dividend, to be paid three years from now, will be $5. After seven years, the company and the dividends it pays) will grow at a rate of 8.0 percent. What is the value of Sheridan stock with a required rate of return of 14 percent? (Round intermediate calculations and final answer to 2 decimal places, eg. 15.20.) Value of stock