1. What are the two main components of a normal debt service payment?
A.) Interest and coupon B.) Interest and advertising C.) Advertising and principle D.) Interest and principle
2. Future Value of an Annuity What is the future value of a $900 annuity payment over 7 years if the interest rates are 9 percent?
$10,780.19
$1,645.24
$8,280.39
$6,867.00
3. Value of a Preferred Stock If a preferred stock from Pfizer Inc. (PFE) pays $4.00 in annual dividends, and the required return on the preferred stock is 8.00 percent, what's the value of the stock?
$50.00
$.32
$32.00
$.50