common stock question help: The Weatherfield Way Construction Company

[dmillionaire]

hey guys I am currently studying for a upcoming test and I am stuck on one of the review questions.

The weatherfield way construction company has common and preferred stock outstanding. the preferred stock pays an annual dividend of $ 7.50 per share, and the required rate of return for similar preferred stocks is 11 percent. The common stock paid a dividend of $3.00 per share last year, but the company expected that earnings will grow by 25 percent for the next two years before dropping to a constant 9 percent growth rate afterwards. the required rate of return on a similar common stock is 13 percent.


what is the per-share value of the company's preferred and common stock.

Any help is much appreciated
Thanks in advanced!

 

[stapel]

The Weatherfield Way Construction Company has common and preferred stock outstanding. The preferred stock pays an annual dividend of $ 7.50 per share, and the required rate of return for similar preferred stocks is 11 percent. The common stock paid a dividend of $3.00 per share last year, but the company expected that earnings will grow by 25 percent for the next two years before dropping to a constant 9 percent growth rate afterwards. The required rate of return on a similar common stock is 13 percent.

What is the per-share value of the company's preferred and common stock?

What are your thoughts? What have you tried? How far did you get? Where are you stuck?

Please be complete. Thank you!