9-2 Constant growth valuation Tresnan Brothers is expected to pay a $1.00 per share dividend at the end of the year (ie., D₁ = $1.00). The dividend is expected to grow at a constant rate of 10 percent a year. The return on the stock, r_s is 15%. What is the value per share of the companys stock?

9-6 Preferred stock valuation Farley Inc. has perpetual preferred stock outstanding which pays a dividend of $5 at the end of each year. The preferred stock sells for $100 a share. What is the required rate of return?