Using the constant rate of growth model, a firm's expected dividend yield is $4, the stock price is $100, and its growth rate is 5%. What is the cost of equity

Select one:

a. 6.65%.

b. 9.0%.

c. More information is required to answer this question.

d. 10%.

The growth rate for the firm's common stock is 7%. The firm's preferred stock is paying an annual dividend of $3, What is the preferred stock price if the required return is 8%?

Select one:

a. None of these options.

b. $37.50.

c. $3.00.

d. $50.00