3. A stock is expected to pay a dividend of $0.50 at the end of the year, and it should continue to grow at a constant rate of 7% a year. If its required return is 12%, what is the stock's expected value?

4. Ezzell Corporation issued preferred stock with a 10% annual dividend. The stock currently yields 8%, and its par value is $100.

a. What is the stock's value?

b. Suppose interest rates rise and pull the preferred stock's yield up to 12%. What is its new value?

5. A stock is expected to pay a dividend of $0.50 at the end of the yearand it should continue to grow at a constant rate of 7% a year. If its required return is 12%, what is the stock's expected price?