(a) Calculate the current share price of the common stock of the company that is expected to pay a constant dividend of $2 per year if the required rate of return is 15%.

(b) Calculate the current share price if the company starts increasing dividends by 3% per year beginning with the next dividend. The required rate of return stays at 15%.

(c) Michal Corp.s stock is selling for $10.50. It has just paid a $1 dividend and dividends are expected to grow at 5% per year. Calculate the required rate of return.

(d) Calculate the dividend yield for Michal Corp.s stock.

(e) Name THREE differences between common stock and preferred stock.