Please answer both questions thank you!

Question 1

A common stock paid a dividend of $3.75 this year. It is expected to grow at 8% each year for the foreseeable future. Investors require an 11% return rate. What is the value of a share of this stock?

$135.00

$125.00

$22.50

$3.97

Question 2

A preferred stock pays 3% on its par value of $200, and the required rate of return is 9%. What is the value of the preferred stock?

		$60
		$67
		$200
		$267