1. Preferred stock has a dividend of $2.35 and is selling for a price of $36.50 per share, what is the component cost of preferred stock?
a. 6.4%
b. 8.3%
c. 12.1%
d. 5.3%
e. 4.5%
2. A project costs $40,000 and return $10,000 per year for 6 years. If the required rate of return is 10% what is the net present value?
a. $1,729
b. $2,111
c. $5,677
d. $3,553
e. $4,499