common stock has an annual dividend of $1.88, an assumed growth rate of 5%, and a 14% discount rate, what is its value? a. $37.60 b. $21.93 c. $14.10 d. $13.43 I. A 2. A preferred stock has an annual dividend of $2, what is its value at an 8% discount rate? Not enough information to calculate. b. a. $50.00 $25.00 $0.16 . d. 3. Assume a one year treasury rate of 2.39% and a two year rate of 2.31%, what is the implied on year rate, one year forward? a. 2.2300% b. 2.2301% c. 2.3101% d. 2.3500% 4 Dayanara is saving to start a business. She invests $10,000 this year, $12,000 next year and $15,000 the following year in an investment earning 3%. How much capital will she have at the end of three years? a. 37,000 b. 34,747 c. 36,962 d. 39,108 5. How is the present value of positive future cash flows affected by increasing the discount rate? a. Increases b. Unchanged c. Decreases d. Depends on the rate and compounding frequency