1) A tech company plans to issue some $30 par preferred stock with a 7% dividend. The stock is selling on the market for $33, and the company must pay flotation costs of 5% of the market price. What is the cost of the preferred stock?

Question 1 options:

	5.50 percent
	7 percent
	6.70 percent
	5.79 percent

2.) The following table shows the annual expected returns for two stocks.

Probability of return	Stock A	Stock B
0.10	-3%	-10%
0.20	2	1
0.40	7	8
0.20	12	16
0.10	17	24

What is the standard deviation of Stock B?

2 options:

	8.98%
	8%
	5.48%
	7.8%