1. You are interested in purchasing shares of preferred stock in your favorite beverage company. The stock is paying a constant dividend of $10 per year. How much should you pay per share if k is 8%?
A) $62.50
B) $125.00
C) $1.25
D) Impossible to determine
2. What a deal! Your new car only costs $28,300 after rebates and trade. If you finance it for 60 months at 6% annual interest, what will be your monthly payment?
A. $471.67
B. $544.40
C. $547.12
D. $1,751.08