Activity: Stock Valuation Answer the following questions on a yellow paper. 1. An 8 percent preferred stock with a market price of 110 per share and a 100 par value pays a cash dividend of 2. A company has an outstanding issue of 1,000 shares of preferred stock with a 100 pesos par value and a 8 percent annual dividend. The firm also has 5,000 shares of common stock outstanding, If the stock is cumulative and the board of directors has passed the preferred dividend for the prior two years, how much must the preferred stockholders be paid prior to paying dividends to common stockholders? 3. A firm has an expected dividend next year of 1.20 per share, a zero-growth rate of dividends, and a required rate of return of 10 percent. What is the value of a share of the firm's common stock? 4. Habagat Company common stock is expected to pay a dividend of 3.00 pesos forever and currently sells for 21.42. What is the required rate of return