The Franklin Company pays a dividend of $1.36 at t = 1.and proceeds to have a growth of 11 between year 1 and 2, and only after year 2 does the growth rate become a constant 5 and remain so into the future. Financial analysts think the Franklin Company should have a required return of 7 percent. What should be its stock price?

You can buy the Edward Co.s perpetual preferred stock that pays dividends of $2.1 per share. At a required rate of return of 5.1% what should be its value?