Question

28.

Which of the following statements is not correct?

		Common stockholders have claim priority over preferred stockholders.
		preferred stock dividends are not tax deductible for the issuing corporation.
		preferred stockholders have claim priority over common stockholders.
		Debt stockholders have claim priority over preferred stockholders

33.

A store is offering a diamond ring for sale for 24 months at $100 per month. The retail price of the ring is $2,800. What is the interest rate on this offer?

		10.78%
		12.92%
		7.64%
		14.38%

37.

You want to receive $5,000 per month in retirement. If you can earn 0.5% per month and you expect to need the income for 30 years, how much do you need to have in your account at retirement?

		$695,808
		$454,097
		$786,484
		$833,958

Answer 1

1.
Common stockholders have claim priority over preferred stockholders.

2.
=RATE(24,-100,2800)*12
=14.38%

3.
=5000/0.5%*(1-1/(1+0.5%)^(12*30))
=833958.072