1. Preferred stock from HiTech, Inc. pays $1.20 in annual dividend. Calculate the value of the stock if the required return on the preferred stock is 4.5 percent. Explain any calculations step by step and provide all formulas used.
2. HiTech, Inc. has earnings per share of $1.82 and a P/E ratio of 31.54. Calculate the stock price. Explain calculations step by step and provide formulas used.