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1. Burnwood Tech plans to issue some $80 par preferred stock with a 6.40% dividend. A similar stock is selling on the market for $75. Burnwood must pay flotation costs of 10% of the issue price. What is the cost of the preferred stock?

9.10%

6.07%

7.59%

6.83%

2. If the coefficient of correlation is a positive c=value, then the regression equation

a. must have a positive slope

b. must have a negative slope

c. could have either a positive or negative slope

d. must have a positive y intercept

Financial Management, Finance

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