Discuss about the questions given below
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%?
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?