A share of preferred stock pays an annual dividend of $2.00. What is the price of the preferred stock if the required rate of return is 11%?

A stock is expected to pay a dividend of $3.00 next year. Dividends are expected to grow at an annual rate of 4%. What is the required rate of return on the stock if the current market price is $40.00?

What are the dividend yield, capital gains yield, and total required rate of return based on the following.

P₀ = $14, D₁ = $0.98, P₁ = $15.00