1. A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
2. Rank stock, preferred stock and bond from the investor’s risk perspective as investment (with number 1 as the riskiest investment, and two as lesser risky and third as the least risky) and the same risk ranking from a Company’s perspective for these securities.