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1. Gertrude Carter and Co. has an outstanding loan that calls for equal annual payments over the 10-year life of the loan. The original loan amount was $100,000 at an APR of 8 percent. How much of the third payment is interest?

A. $6,130.42

B. $6,207.21

C. $6,851.34

D. $7,447.76

E. $8,051.66

2. Villalpando Winery wants to raise ?$20 million from the sale of preferred stock. If the winery wants to sell one million shares of preferred? stock, what annual dividend will it have to promise if investors demand a return of

a.  11?% b.  16?% c.  8?% d.  10?% e.  5?% f.  3?%.

Financial Management, Finance

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