Earley Corporation issued perpetual preferred stock with a 12% annual dividend. The stock currently yields 10%, and its par value is $100. Round your answers to the nearest cent.

1. What is the stock's value? $
2. Suppose interest rates rise and pull the preferred stock's yield up to 14%. What is its new market value? $

A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D₁ = $1.00), and it should continue to grow at a constant rate of 4% a year. If its required return is 12%, what is the stock's expected price 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

$