E-Eyes.com Bank just issued some new preferred stock. The issue will pay a $7 annual dividend in perpetuity, beginning 12 years from now. Required : If the market requires a 12 percent return on this investment, how much does a share of preferred stock cost today? rev: 09_18_2012 $58.33 $17.61 $15.93 $16.77 $14.97

Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 30 percent for the next 7 years and then level off to a 6 percent growth rate indefinitely.

Required :

If the required return is 15 percent, what is the price of the stock today?

rev: 09_18_2012

$.33

$59.34

$58.15

$41.67

$60.53