What is the price of a preference stock pay an annual dividend of $10? The cost of preference stock is 8%

- Popovich Corporation is about to pay a dividend of $3.00 per share. Investors anticipate that the annual dividend will rise by 6 percent a year forever. The applicable discount rate is 11%. What is the price of the stock today?

- Ann Chen receives an annuity of $450, payable once every two years. The annuity stretches out over 20 years. The first payment occurs two years from now. The annual interest is 6%. Calculate present value of the annuity.

- Gabriel, has just been offered a job at $80,000 a year. He anticipates his salary increasing by 9% a year until his retirement in 40 years. Given an interest rate of 20%, what is the present value of his lifetime salary? Assuming that the salary is paid at the end of the year.