Assignment:
Q.1.Felix wants to have $28,000 four years from now to buy a new car. He wants to make one deposit to fund this expenditure. How much does he have to deposit if he will earn 5.5% per year on his investment?
1. $22,602.07
2. $24,354.09
3. $25,608.12
4.$22,125.16
q.2. XYZ plans to issue some $60 par preferred stock with a 6% dividend. A similar stock is selling on market for $70. XYZ must pay flotation costs of 5% of the issue price. What is the cost of the preferred stock?
1. 5.99%
2. 5.41%
3. 6.3%
4. 4.99%