10. You are interested in purchasing shares of preferred stock in your favorite beverage company. The stock is paying a constant dividend of $10 per year. How much should you pay per share if k is 8%?

A) $62.50

B) $125.00

C) $1.25

D) Impossible to determine

11. What a deal! Your new car only costs $28,300 after rebates and trade. If you finance it for 60 months at 6% annual interest, what will be your monthly payment?

A. $471.67

B. $544.40

C. $547.12

D. $1,751.08