4. Investment C and D had market values of $50,000 and $30,000, respectively. During the year, C generated cash flows of $2000 and D generated cash flows of $2000. The current market market values for C and D are $58,000 and $27,000, respectively, a) Calculate the expected rate of return on investments C and D using the most recent year's data b) Assuming that the two investments are equally risky, which one will you recommend. why?

5. A corporation is contemplating issuance of a 15% preferred stock that the expect to sell for $90 per share. The cost of issuing and selling that stock will be $5 per share. Find out cost of preferred stock. please show work and equation.