1. An investor is contemplating investing heavily in a stock whose dividend is $27 per share but expected to grow by 18% for the next 3 years and by 12% after that. Find the current price of this stock if this investor requires a rate of return of at least 15%.
2. If the required rate of return is 9% and the dividend for preferred stock is $6.50, what would be the value of this preferred stock?

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