2) Little, Inc., has an issue of preferred stock outstanding that pays a $8 dividend every year, in perpetuity. If this issue currently sells for $64 per share, what is the required return.

3) The stock price of Bod Corp. is $80. Investors require a 10% rate of return on similar stocks. If the company plans to pay a dividend of $4.50 next year, what growth rate is expected for the company's stock?

4) Flower Company stock currently sells for $55 per share. The market requires a 9% return on the firm's stock. If the company maintains a constant 4% dividend growth rate, what was the most recent dividend per share paid on the stock (D0)? 5) Katie Corp. has an unusual dividend policy. It plans to pay a dividend of $5 per year for the for the first 5 years. The company will then grow the dividends at rate of 6.5% per year, forever. If investors require a 12% return, what is the current price of Katie Corp stock?