Dividend every year in perpetuity

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1.  Rascal, Inc., has an issue of preferred stock outstanding that pays $9.4 dividend every year in perpetuity. If this issue currently sells for $93.28 per share, the required return is      ___________  percent. Express in percentage without the % sign, and round it to two decimal places.

2. CSU Co. just paid a dividend of $2.1 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. If investors require an 9.2 percent return on Sky High Co. stock, the current price is $ _________ . Round it to two decimal places.

Reference no: EM132017236

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