63.

An issue of preferred stock is paying an annual dividend of $2.00. The growth rate for the firm's common stock is 6%. What is the preferred stock price if the required rate of return is 10%? (Round your answer to 2 decimal places.)

64.

An issue of common stock is selling for $58.00. The year end dividend is expected to be $2.85 assuming a constant growth rate of 9%. What is the required rate of return? (Round your answer to 1 decimal place.)

65.

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 14 percent. This return was in line with the required returns by bondholders at that point as described below:

Real rate of return	3	%
Inflation premium	6
Risk premium	5
Total return	14	%

Assume that five years later the inflation premium is only 2 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 25 years remaining until maturity. Compute the new price of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)