3. Calculate the value of a new preferred stock that pays an annual dividend of $2.00, and offers a coupon rate, or yield of 8.0%. If the market interest rate for like investments goes up to 9.0%, what would be the approximate market value of the stock? If the market interest rate for like investments goes down to 7.0%, what would be the approximate market value of the stock?

4. You are a student at Webster University. Once you obtain your MBA degree you stand to increase your level of income substantially, which will allow you to save enough money on a monthly basis to have at least $1,000,000 in liquid savings by the time you retire at age 65. Calculate how much you will need to save each month, assuming you are now 30 years old, in order to have $1,000,000 by retirement. Assume that moderately aggressive average rates of return from financial markets are 8.0% per year. Afterward, calculate how much you would need to save each month assuming aggressive rates of return of 13.0% per year.