6. XYZ co. has a preferred stock with an annual dividend of $8.5 per share. If the required return on this preferred stock is 7.5%, at what price should the stock sell? * a) $106 b) $105 O c) $103 d) $113.33 e) None of the above 7. XYZ Co.'s stock price is $58.88, and it recently paid a $2.00 dividend. This dividend is expected to grow by 52% for the next 3 years, then grow forever at a constant rate, g; and rs = 12%. At what constant rate is the stock expected to grow after Year 3? * a) 9.5% Ob) 6.25% O c) 15.75% d) 33.33% e) None of the above