1a) A preferred stock will pay $7.5 dividends starting 10 years from now (end of year 10). What is the price of the stock given 12% required rate of return?

1b) A firm common stock just paid a dividend of $2. The dividend will increase by $4 per year for the next 4 years after which the growth rate will be 5% per year indefinitely. Given a 10% return, how much would you pay for the stock today?