The Danbury Corporation stock is expected to have a dividend next year of $1.94 (that's one year from today!!!) and have a growth rate of dividends of 11% between that point and two years from today. But thereafter it settles down to a constant growth rate of 4% into the future. If such stocks are expected to have a rate of return of 8% what should be the price of Danbury Corporation stock?

Calculate the Bethel Corp. cost of preferred stock that it plans to issue, incurring a flotation cost of 3%, if it is planning on issuing these preferred shares to the public for $94 per share, and plans on paying annual dividends of $8.