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5. An investment offers a 14 percent total return over the coming year. Tom Jones thinks the total real return on the investment will be only 9 percent. What does Tom believe the inflation rate will be over the next year? Do not round intermediate calculations and round your final answer to 2 decimal places.

6. Stockade Corp. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors require a return of 11 percent on the companys stock. What is the current stock price? What will the stock be in 3 years? What will the stock be in 15 years? Do not round intermediate calculations and round your final answer to 2 decimal places.

7. Plantoday Inc. will pay a $3.04 per share dividend next year. The company pledges to increase its dividend by 3.8 percent per year indefinitely. If you require a return of 11 percent on your investment how much will you pay for the companys stock today? Round your answer to 2 decimal places.

8. Lily Corp. has an issue of preferred stock outstanding that pays a $5.50 dividend every year in perpetuity. If this issue currently sells for $108 per share, what is the required return? Round your answer to 2 decimal places.

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