ABC issued $10 million of perpetual bonds in 2000. The bonds were issued in $100 denominations with annual coupon interest rate of 6% Determine the value of these bonds today to an investor who requires a 10% return on their investment.

$6

$10

$60

$100

Assume the dividend on ABC's $3.00 preferred stock is paid annually at the end of the year. Determine the value of this preferred stock to an investor who requires a 10% rate of return.

		$3.00
		$12
		$30
		$39