1. A firm is expected to pay a dividend of $9.69 next year and $10.17 the following year and financial analysts believe the stock will be at their target price of $114.25 in two years -Compute the value of this stock assuming a required return of 15.50%.
$101.66
$134.11
$117.41
$88.01
$116.11
$90.16
$154.90
2. If a preferred stock from the FIN340 Company pays $8.31 in annual dividends and the required return on the preferred stock is 7.4%, what is the current value of the stock?
$7.74
$8.92
$120.61
$104.56
$8.33
Not Possible to Calculate with the Data Provided
$112.30