a)EBZ Corporation just issued some new preferred stock. The issue will pay an annual dividend of $2 in perpetuity, beginning 5 years from now. If the market requires a return of 6 percent on this investment, how much does a share of preferred stock cost today?

b)AMC Inc. stock is selling for $30 per share. The next dividend will be $1.20 per share, and the dividend is expected to grow at 3 percent forever. What is the dividend yield? The capital gain yield? The total required return?