problem1: A record collector has agreed to sell her entire collection to a historical museum in three (3) years at a price of $100,000. The current risk-free rate is 7%. Determine the price should she value her collection today?
problem2: Sopp Accounting Services has an outstanding issue of 1,000 shares preferred stock with a $100/value, an 8% yearly dividend, & 5,000 shares of common stock outstanding.
If the stock is cumulative & the board of directors has passed the preferred dividend for the last two years, how much must preferred stockholders be paid prior to paying dividends to common stockholders?