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