What's the value of a preferred stock if we assume it has an annual dividend $1 per share and the required rate of return is 10%? ______

$ 5

$ 10

$ 50

$ 20

How to calculate the nominal risk-free rate? ______

		Approximately equal to real risk-free rate.
		Approximately equal to real risk-free rate times expected inflation rate.
		Approximately equal to real risk-free rate plus the expected inflation rate.
		Approximately equal to real risk-free rate minus the expected inflation rate.