1. What is the effective annual rate if a bank charges you 9.50 percent compounded quarterly?
A. 9.62 percent
B. 9.68 percent
C. 9.72 percent
D. 9.84 percent
E. 9.91 percent
2. A firm is paying an annual dividend of $8.00 for its preferred stock which is selling for $62.00. There is a selling cost of $3.00. What is the after-tax cost of preferred stock if the firm's tax rate is 38%? (Round your answer to 2 decimal places.)
13.56% 15.71% 12.21% 15.01%