What price should the preferred stock sell for

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1. The preferred stock of your company pays $2.5 quarterly dividends. If investor's require an 8.5% rate of return for these shares, what price should the preferred stock sell for?

2. How many years would it take for your money to quadruple if it was invested in a bank that pays 5% interest compounded monthly? (1 year = 12 months)

3. Jack adds $2,000 to his savings account at the end of each year. He earns a 10% rate of return. What is the balance in his savings account at the end of thirty years?

Reference no: EM131861772

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