Click here to read the eBook: Constant Growth Stocks VALUATION OF A CONSTANT GROWTH STOCK Investors require a 17% rate of return on Levine Company's stock (i.e., rs = 17%). a. What is its value if the previous dividend was Do = $3.00 and investors expect dividends to grow at a constant annual rate of (1) -4%, (2) 0%, (3) 5%, or (4) 10%? Do not round intermediate calculations. Round your answers to two decimal places. (1) $ (2) $ (3) $ (4) $ Click here to read the eBook: Preferred Stock PREFERRED STOCK VALUATION Earley Corporation issued perpetual preferred stock with a 8% annual dividend. The stock currently yields 8%, and its par value is $100. a. What is the stock's value? Round your answer to two decimal places. $ b. Suppose interest rates rise and pull the preferred stock's yield up to 15%. What is its new market value? Round your answer to two decimal places. $