part b

1. LSP Co. has an issue of preferred stock outstanding that pays a $5.50 dividend every year in perpetuity. If the required return of this stock is 5%, what is the selling price per share?* a) $110 a O b) $112 O c) $113 O d) $114 O e) None of the above 2. Saman Motors is expected to grow at a constant rate of 6% a year into the indefinite future. Its next dividend is expected to be $2.25 a share. The rate of return on stocks similar to Saman is about 11%. What should a share of Saman Motors sell for today? O a) 543 Ob) S45 O c) 846 d) $50 $ O e) None of the above 3. Torku Inc.'s stock has a required rate of return of 11.50%, and it sells for $30.00 per share. Torku's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, DO? * O a) $0.95 Ob) $1.05 6 c) $1.16 d) $1.26 e) None of the above 4. Jolie Corporation just paid a dividend of DO = $0.75 per share, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The company's beta is 1.25. the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price? * a) $10.65 b) $10.89 c) $12.26 d) $12.64 e) None of the above