1. Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 35 percent for the next 3 years and then level off to a 8 percent growth rate indefinitely. If the required return is 14 percent, what is the price of the stock today?

2. Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $112.50, but flotation costs will be 5% of the market price, so the net price will be $106.88 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places.