A) Assume that Business B has preferred stock outstanding with par value of $1050,

dividend per share of $68.50, and a current market value of $800 per share. Calculate the

cost of preferred stock.

B) "DOL 5000 units = 5"

Interpret the above statement

If sales level decrease by 5%, then interpret the statement again.

C) A company presently pays a dividend of $1 per share and has a share price of $20.

If this dividend was expected to grow at a 12 % rate forever, what is the firm's expected,

or required, return on equity using a dividend discount model approach?