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problem1: A preferred stock pays an annual dividend of 5 dollar. If you want to earn eleven percent on this investment, determine the maximum amount you should pay to purchase one share of this stock today?                                           

[A] $66.67

[B] $90.91

[C] $181.82

[D]$22.73

[E] $45.45

problem 2: Determine the present value of 1,200 dollar received at the end of each year for 8 years starting in year 4 & ending in year eleven if the discount rate is ten percent?                                               

[A] $3,975.08

[B] $6,183.65

[C] $6,401.91

[D] $4,372.59

[E] $4,809.85

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M917638

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