1. An 8% preferred stock pays an annual dividend of $3.75. What is one share of this stock worth today?
$46.88
$0.37
$37.50
$3.75
$50.00
2. You are considering a project with an initial cost of $4,400. What is the payback period for this project if the cash inflows are $550, $970, $2,800, and $500 a year over the next four years, respectively?
A. 2.04 years
B. 2.36 years
C. 3.16 years
D. 3.36 years
E. 2.89 years