Given the following data, calculate the value for each security.

1. The current dividend paid to common stock holders of Telcon Corporation is $5 per share. Dividends are expected to grow at an annual rate of $12%. The market requires a rate of return of 18% per annum.What is the stock's current price?

2. What is the value of preferred stock where the dividend rate is 9% on a $100 par value? The appropriate discount rate for the stock for this level of risk is 15%.

3. The Pennington Corporation issued a new series of bonds on January 1, 1979.The bonds were sold at par ($1,000), have a 12 percent coupon, and would mature in 30 years, on December 31, 2008.Coupon payments are made semiannually (on June 30 and December 31).