1.

Determine which of these characteristics is consistent with debt and which is consistent with equity.

Characteristics	Debt	Equity
Usually has no voting rights.
Usually has no specified maturity date.

2. At the present time, Tamin Manufacturing does not have any preferred stock outstanding but is looking to include it in its capital structure in the future. Tamin has found some institutional investors that are willing to purchase its preferred stock issueprovided that it pays a perpetual dividend of $8.80 per share. If the investors pay $92.00 per share to acquire their shares, then Tamins cost of preferred stock will be ________.