Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $3.60 per share. If the required return on this preferred stock is 6.0%, then at what price should the stock sell?

a. $73.20

b. $63.60

c. $60.00

d. $56.60

e. $46.80

The Francis Company is expected to pay a dividend of D₁ = $2.50 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.40, the market risk premium is 5.50%, and the risk-free rate is 4.50%. What is the company's current stock price? Do not round intermediate calculations.

a. $20.49

b. $42.74

c. $41.67

d. $62.50

e. $40.32