The current price of BIQUING inc. preferred stock is $100 per share. The annual dividend is $7. What is the company's gusto preferred stock for use in calculating the WACC, if Apple Inc. would issue new preferred stock, with flotation cost of 11% of the price?

-7.865

7.812

-7.778

You are considering buying stock in HUANG Inc., a San Angelo company that provides PPO medical services. The dividend just paid was $1.00 and is expected to increase by 10% per year for two years. Growth will then slow to 4% per year for the following three years as competitors enter the market, and finally slow to 3% per year rate of growth thereafter similar to that of the economy overall. If you require a 9% rate of return, what is the most you should be willing to pay for a share of HUANG's stock?

-$18.712

-$19.997

-$20.492

$21.317