1. IMC paid a dividend of $1.60 on its common stock yesterday. The dividends are expected to grow at 6% per year indefinitely. If the 10-year Treasury bond yield is 2.6%, IMC stock beta is 1.3, and market rate of return is 10%, estimate the value of IMC stock 3 years from now.
2. FETs preferred stock is selling at $54 on the market and pays an annual dividend of $4.20 per share.
   1. What is the expected rate of return on the stock?
   2. If an investor's required rate of return is 10%, what is the value of the stock to that investor?
   3. Considering the investor's required rate of return, does this stock seem to be a desirable investment?

You can show your calculator solutions i.e., PMT=, FV=, PV= etc.