(9 pts) 7. On February 15, Max bought a house for $800,000. He paid $100,000 in cash at the time of the purchase and agreed to pay the balance in ten equal annual installments that include both the principal and 7 percent interest on the declining balance. Required: a) Determine the amount of the annual payment. b) Determine the total dollars of interest that Max will pay for this loan. c) Determine the amount of interest that is included in the first payment. It is not necessary to complete an amortization schedule. (9 pts) 8. One year from today, investors anticipate that Haslam Corporation's common stock will pay a dividend of $3.00 per share. After that, investors believe that the dividend will grow at 40% per year for two years and 10% per year for the following two years before settling down to a long-run growth rate of 5%. The required rate of return on Haslam's stock is 17%. What is the stock's value based on the above information? (6 pts) 9. Determine the value of a share of preferred stock when the dividend rate is 8 percent and the par value is $65. The appropriate discount rate for a stock of this risk level is 6 percent. Why is the price now different from the par value? (8 pts) 10. You are considering the purchase of the common stock of Tyler Corporation. Given the following information, explain whether or not if you would buy the stock. Support your conclusions with computations. The current market price of Tyler is $150 per share. The one-year target estimated price is $200 per share. The next dividend per share is expected to be $5.00. The beta for Tyler is 1.50. The risk-free rate is 3.0%. The market risk premium is 7.0%