1. The price of Geeslin corp stock is expected to be $68 in 5 years. Dividends are anticipated to increase as an annual rate of 10% from the most recent dividend of $2.00. If your required rate of return is 16%, how much are you willing to pay for Geeslin stock today?
2. Compute the price of a preferred stock which is callable after 7 years at 104 par value, has a yield of 4% and pays a quarterly dividend of $2. If the firm does not buy the preferred back, what will its price be at that time? please show bond formulas used and all work.