Consolidated Industries paid an annual dividend of $1.45 per share last month. Today, the company announced that future dividends will be increasing by 3.2 percent annually. If you require a 24.2 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

Question 3 options:

	$7.48
	$6.90
	$7.13
	$6.77
	$6.48

You are considering a new preferred stock issue. The preferred stock will pay a $16.00 annual dividend, but will not begin paying dividend until 10 years from today. If your required return is 12%, what is the most you would be willing to pay for this preferred stock?

Question 4 options:

	$51.45
	$42.93
	$48.08
	$49.52
	$50.49