1. Double A Corp. is going to offer to its members preferred stock with a par value of $200 and an annual dividend rate of 7%. If a member wants a 8% return, what price should he or she be willing to pay?
2. Write a paper on the Balanced Scorecard and what is means for the decision-making process.
3. A capital investment will produce cash flows of $150,000 annually, in arrears, over its 10-year life. This looks like a good deal since the IRR of 13.2% exceeds the 12.0% required return. To be sure, calculate its Profitability Index.