1a. Earley Corporation issued perpetual preferred stock with a 12% annual dividend. The stock currently yields 9%, and its par value is $100. Round your answers to the nearest cent. What is the stock's value? $___ 1b. Suppose interest rates rise and pull the preferred stock's yield up to 12%. What is its new market value? $___

1c. Holtzman Clothiers's stock currently sells for $40.00 a share. It just paid a dividend of $3.75 a share (i.e., D₀ = $3.75). The dividend is expected to grow at a constant rate of 7% a year. What stock price is expected 1 year from now? Round your answer to two decimal places. $___ 1d. What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. $___