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1. The bank offers you a $15,000, seven-year loan at 8.25 percent annual interest. What will your annual loan payment be? 2. Suppose a company

1. The bank offers you a $15,000, seven-year loan at 8.25 percent annual interest. What will your annual loan payment be?

2. Suppose a company offers a dividend payment of $2.5 every year. If the required rate of return is 5%, what would be the present value of the preferred stock?

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