1. Jeff has the opportunity to receive lump-sum payments either now or in the future. Which of the following opportunities is the best, given that the interest rate is 4% per year?
A. one that pays $ 900 now
B. one that pays $ 1080 in two years
C. one that pays $ 1350 in five years
D. one that pays $ 1620 in ten years
2. A preferred stock pays 3% on its par value of $200.00, and the required rate of return is 9%. What is the dividend?
A. $1.80 B. $6.00 C. $60.00 D. $18.00