6. Kratos Investments is considering to buy a building for $12M. Bank Varnava is willing to give a 10-year loan payable in equal annually with an annual interest rate of 13%. Bank Bazil is willing to give a 10-year loan payable in equal annually with an annual interest rate of 10%. In addition, Bank Bazil will charge an upfront commission today that equals to 3.5% of the loan, what bank should Kratos Investment choose if it prefers lower annual payment? 7. Assume that the stock price is $16 today and it is expected to pay a dividend of $1. The dividend is expected to grow at the rate of 8% starting next year, what is the annual rate of return on this stock