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Common and Preferred Stocks Valuation Question 1. New York Company has just paid dividends of...

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Common and Preferred Stocks Valuation Question 1. New York Company has just paid dividends of $3.50 per share. Which the company projects will grow at a constant rate of 5 percent forever. If New York Company's shareholders require 10 percent rate of return, what is the price of its common stock? Question 2. You plan to buy Bulldog Company's stock. You predict that Bulldog will pay dividends of $3 in year 1 and $4 in year 2, $4 in year 3 respectively. You are also confident that you can sell the stock for $70 per share at the end of year 3. If you require a 12 percent return on the stock, what is its fair price from your perspective

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