question 1

question 2

You are saving for your child's education. She will start college in six years. You have agreed to pay for four years. She thinks she will need $20,000 a year while in college. The account while in college will earn 6% annually. The amount you save before she is in college will be in an account earning 8%, compounded monthly. You think your daughter might get a scholarship worth $5,000 when she starts college. What is the difference each month between how much you need to save each month if she does or doesn't get the scholarship? $54.34 $53.31 $56.80 $57.86 Coke has a preferred stock that pays a dividend of $16 and costs $105. What would Pepsi's preferred stock need to pay for you to be indifferent between the two stocks. Pepsi currently sells for $110. Coke and Pepsi have the same beta. $17.63 $11 $15.27 $16.76