Scanlin, Inc. is considering a project that will result in initial aftertax cash savings of $2.1 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debut-equity ratio of 1.00, a cost of debt of 9.6 percent, and a beta of 1.50. The cost-saving proposal is closely related to the firms core business, so it is viewed as having the same risk as the overall firm. Assume a 34 percent tax rate, return on the market of8 percent, and the riskless return of 2 percent.

Q4. The firms most recent dividend was $2.05 per share, and dividends are expected grow at an annual rate of 4.1 percent indefinitely. How much should the firms price per share be? Round your answer to two decimal places.

Q5. Suppose Cougar Gold Inc., Scanlins biggest competitor, has 400,000 shares of preferred stock outstanding with $3.65 stated dividend. What is Cougar Golds preferred stock price if the next dividend is in exactly 7 months and the discount rate of 4.2%? Round your answer to two decimal places.