1. Artivel Mining Corp.'s preferred stock pays a dividend of $5 each year. If the stock sells for $40 and the next dividend will be paid in one year, what return do investors require on Artivel preferred stock?
2. Silaic Tools has issued preferred stock that offers investors a 10 percent annual return. The stock currently sells for $80, and the next dividend will be paid in one year. How much is the dividend?