1. You are considering to purchase a significant amount of the common stock of MySpace. The stock has consistently paid a dividend of $2.00/share and is trading this week at about $20/share. If your required rate of return for this stock is 12% should you make the purchase?
2. Suppose that the price of a Treasury bill with 60 days to maturity and a $10 million face value is $8,500 ,000. What is the yield on a bank discount basis?