The Weatherfield Way Construction Company has common and preferred stock outstanding.
The preferred stock pays an annual dividend of $7.50 per share, and the required rate of return for similar preferred stocks is 10%.
The common expects to pay a dividend of $3 per share next year, and the company expects its dividends to grow at a constant 10% growth rate.
The required rate of return on similar common stocks is 15%. What is the computed prices of its common stock?