1. You are considering buying a new, $15,000 car, and you have $2,000 to put toward a down payment. If you can negotiate an interest rate of 12% and finance the car over 60 months, what are your monthly car payments?
2. Calculate the value of a preferred stock that pays a dividend of $2.50 per share when the market's required yield on similar shares is 13 percent.
3. You own 500 shares of Somner Resources' preferred? stock, which currently sells for $33 per share and pays annual dividends of $3.30 per share. If the market's required yield on similar shares is 11 percent, should you sell your shares or buy more?