9. An issue of preferred stock is paying an annual dividend of $2.50. The growth rate for the firm's common stock is 5%. What is the preferred stock price if the required rate of return is 9%?

Multiple Choice

• $32.78

• $25.28

• $27.78

• $30.28

12. Assume a corporation has earnings before depreciation and taxes of $115,000, depreciation of $40,000, and that it has a 35% combined tax bracket. What are the after-tax cash flows for the company?

Multiple Choice

• $88,750

• $83,550

• $93,350

• $92,550