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A. A firm issues preferred stock with a dividend of $4.20. If the appropriate discount rate is 7.02% what is the value of the preferred

A. A firm issues preferred stock with a dividend of $4.20. If the appropriate discount rate is 7.02% what is the value of the preferred stock?

B. The risk-free rate is 3.71% and the market risk premium is 9.29%. A stock with a of 1.35 just paid a dividend of $1.76. The dividend is expected to grow at 21.82% for three years and then grow at 4.67% forever. What is the value of the stock?

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