1. Equity Lighting Corporation is contemplating issuance of 15% of preferred stock that they expect to sell for R 110 per share. The cost of issuing and selling the stock will be R10 per share. What is the cost of Equity lightning s preferred stock?

2.

Shell industries, a cabinet manufacturer expects to receive the following mixed stream of cash flow over the next year 5 years from one of its small customers: year 1, $ 10 000; year 2, $12 500; year 3 $11 500; year 4, $13 500 and year 5 , $15 000. If shell expects to earn 8% on its investment, how much will it accumulate at the end of 2 years?

	A.	$12 670
	B.	$17 579
	C.	$14 575
	D.	$13 500
	E.	15 750