3. Dimensions Corporation's preferred stock recently paid its annual dividend of $6.75 per share. The par value of the preferred stock is $100. Investors require a 9% rate of return on this stock. What is the intrinsic value of the preferred stock? e) $633 a) $1,000 -) $75 c) $100 d) $1,111 4. Food Chain, Inc. common stock recently paid a dividend of $2.60. The firm typically pays out 50% of its earnings as dividends and retains the rest for investment in the firm. Food Chain has a return on equity of 15 percent. If investors require a return of 12 percent, what is the intrinsic value of the firm's common stock? Assume dividends will grow at a constant rate. e) $57.78 a) $21.67 b) $23.29 c) $62.11 d) $24.92