1. You want to receive $5,000 per month in retirement. If you can earn 0.8% return per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement?

A. $572,333

B. $589,511

C.$622,189

D. $567,757

2.A firm's preferred stock currently sells for $90 per share and pays a dividend of $10 per share. However, the firm will only receive $85 per share from the sale of new preferred stock due to the floatation costs. What's the firm's component cost of Preferred stock?

A.9.8%

B.10.9%

C. 11.8%

D. 12.5%