Tarpon Bay Industries preferred stock pays an annual dividend of $2.50 per share. If the risk-free rate is 2%, the expected return on the market is 8%, and Tarpon Bay's preferred stock is only one-half as risky as the market on average, what is the most that an investor should be willing to pay for a share of Tarpon Bay preferred stock TODAY?

You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. (leave no cells blank - be certain to enter "0" wherever required. do not round intermediate calculations. enter your answers in millions.) a. what will profits be if sales turn out to be $1.5 million?