Earley Corporation issued perpetual preferred stock with a 12% annual dividend. The stock currently yields 7%, 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 11%. What is its new market value?
   $

A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D1 = $2.75), and it should continue to grow at a constant rate of 4% a year. If its required return is 15%, what is the stock's expected price 1 year from today? Do not round intermediate calculations. Round your answer to the nearest cent.

$