erences Mailings Review View Tell me AaBbCcDdEe AaBbcode AaBbCcDc AB AEEEE 21 v Normal No Spacing Heading 1 Heading Question 3 Purcell Corporation has preference shares with an annual dividend of $3.23. If the required return on Purcel's preference shares is 7.7%, what is its price? (Hint:For a preference share, the dividend growth rate is zero.)Purcell's share price will be (Round to the nearest cent.) Question 5: Suppose Maxwell Corporation will pay a dividend of $2.72 per share at the end of this year and $3.04 per share next year. You expect Maxwell's share price to be $50.59 in two years. Assume that Maxwell's equity cost of capital is 9.6%. a. What price would you be willing to pay for a Maxwell share today, if you planned to hold the share for two years? b. Suppose instead you plan to hold the share for one year. For what price would you expect to be able to sell a Maxwell share in one year? c. Given your answer in part b, what price would you be willing to pay for z Maxwell share today if you planned to hold the share for one year? How does this compare to your answer in part a? Question 6: No Growth Company currently pays a dividend of $0.55 per quarter, and it will continue to pay this dividend forever. What is the price per No Growth share if the firm's equity cost of capital is 14.9%? The share price is $ (Round to the nearest cent.)