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A. Calculate the price of the following preferred stock: Dividend $1.00; required rate of return: 10% B. A company pays a $1.50 dividend and is

A. Calculate the price of the following preferred stock: Dividend $1.00; required rate of return: 10%

B. A company pays a $1.50 dividend and is expected to grow at 5% per year. The required return on this stock is 11%. What is the current price?

C. A bank stock is currently paying $2.53 in dividends per year. The bank grows slowly, at about 1% per year. Given a required rate of return of 12% per year, what is the current stock price?

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