3. You recently purchased Flugstad Inc. common stock at $45.00 per share and expect to sell it after one year and earn an 11% return over the year. If it pays a $2.50 dividend at the end of the year, what price do you have to sell for in order to earn the 11%?

4. Farmers National Bank has issued preferred stock that pays a $8.50 annual dividend. The market required return for this investment is 11.3%.

What is the price of a share of Farmers' preferred stock?