COMPLETE QUESTION #$1$ BELOW

a$)$ Farley Inc. has perpetual preferred stock outstanding that sells for $$46$ a share and pays a

dividend of $$2\mathrm{.}00$ at the end of each year. What is the required rate of return? Round your

answer to two decimal places.

b$)$ Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also,

because its pit is getting deeper each year, its costs are rising. As a result, the company's

earnings and dividends are declining at the constant rate of $6\%$ per year. If $D_0=$$$3$ and

$c_s=17\%,$ what is the value of Maxwell Mining's stock? Round your answer to the nearest

cent.

c$)$ A stock is expected to pay a dividend of $$1\mathrm{.}00$ at the end of the year $($i$.$e$.,D_1=$$$1\mathrm{.}00),$ and it

should continue to grow at a constant rate of $10\%$ a year. If its required return is $12\%,$ what

is the stock's expected price $3$ years from today? Do not round intermediate calculations.

Round your answer to the nearest cent.$|$