You are evaluating a company's stock. The stock just paid a dividend of $1.86. Dividends are expected to grow at a constant rate of 4 for long time into the future. The required rate of return (Rs) on the stock is 11 percent. What is the fair present value?

Rounded up to 0 decimal places

A preferred stock is expected to pay a constant quarterly dividend of $1.25 per quarter into the future. The required rate of return, Rs, on the preferred stock is 13.5 percent. What is the fair value (or price) of this stock?

Select one:

$52.36

$18.65

$37.04

$24.36