1. Valesco Industries Inc. has a historic P/E multiple of 15, a current EPS of $2.50 projected to grow by 4% in the coming year, and a forward-looking P/E multiple of 18, With this information please estimate the current price of the firm's stock.
2. If the market risk premium is 4%, and the risk-free rate is 2.2%, what would the required return on a stock with a beta of 1.3? Show all work please!
3. What is the value of a preferred stock (assume: growth of 2% annually) paying a fixed dividend of $3 per share when the discount rate is 10%?