1. McKerley Corp. has preferred stock outstanding that will pay an annual dividend of $3.70 per share with the first dividend exactly 14 years from today. If the required return is 3.6 percent, what is the current price of the stock?
Which of these is a use of cash?
1-Decreasing accounts payable
2- Decreasing accounts receivable
3- Issuing new shares of stock
4- Decreasing inventory
2. Based on the Ibbotson data, which of the following has the highest risk premium?
a. Large-company stocks
b. Small-company stocks
c. US. Treasury Bonds
d. Corporate Bonds