1.Alibi Inc. has preferred stock with a $4 dividend per year. If the return is 11.4%, what is the price of the preferred stock? Round answer to the nearest dollar.

2.If the firm is bankrupt, preferred stockholders will be paid before common stockholders. (True or False)

3.With a callable bond, the issuer can buy back the bonds before maturity. (True or False)

4.You invest 5000 today. If you need 13,500 in 15 years, what interest rate do you need to earn? (Answer xx.xx)