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