1. What should the price of a preferred stock be if it pays a dividend of $2.52 per year and has a required rate of return of 9.9%? Your answer should be to 2 decimal places. Don't include a "$" sign in your answer.
2. The most recent dividend (assume it was just paid) for New Zealand Telecom was $1.51 per share. This dividend is expected to grow at a rate of 4.5% per year indefinitely. What will the dividend be in 4 years? You should round the answer to four decimal places. Don't put a dollar sign in the answer.