Pepsi just issued preferred stock with an annual dividend of $10. Coke just issued preferred stock with an annual dividend of $11. You require Coke to earn 1% more than you do on Pepsi. You require 8% on Pepsi. If you own both issues, which one has a higher price?

		Pepsi
		Coke
		Pepsi and Coke earn the same return
		Neither

A stock just paid a dividend of $2.50. The expected growth rate is 9%. The investor requires 15%. How much will the investor pay for the stock?

		$41.67
		$45.42
		$55.00
		$18.17