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1. Your broker has offered you an investment opportunity at a cost of $500. The opportunity offers $100 in 1 year, $200 in 2 years,

1. Your broker has offered you an investment opportunity at a cost of $500. The opportunity offers $100 in 1 year, $200 in 2 years, and $300 in 3 years. If you require a 10% return on investments of similar risk, should you take the opportunity? 2. The bank offers you a $15,000, seven-year loan at 8.25 percent annual interest. What will your annual loan payment be? 3. 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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