1. You will receive a $851 cash flow 10 years from now and at the end of every year after that in perpetuity. If you require 4.8% return, what is the value of this scenario at the end of year 9?
2. You are considering buying a share of preferred stock which you plan to hold for 8 years, then sell. It has a $8.16 annual dividend and you require 9.12% return at the present moment. At the time you sell, the required return is in the market is expected to be 5.23%. At what price should you expect to sell the stock at the end of year 8?