Industrial Bank just issued some new preferred stock. The issue will pay a $6 annual dividend in perpetuity, beginning 4 years from now. If the market requires a 10 percent return on this investment, how much does a share of preferred stock cost today?

Question 3 options:

	$46.61
	$40.98
	$49.14
	$45.08
	$45.98

Consolidated Industries paid an annual dividend of $8 per share last month. Today, the company announced that future dividends will be increasing by 1.9 percent annually. If you require a 11.25 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

Question 4 options:

	$89.80
	$79.34
	$85.56
	$91.55
	$87.19