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Lo
Lo asked in Business & FinanceOther - Business & Finance · 10 years ago

Finance Homework Question?

I have a couple of finance homework questions that I can't figure out.

1.) You just purchased preferred stock for $50.00. It pays an annual dividend of 5.50 per share forever. What is the rate of return on your investment?

2.) You borrow $500,000 today and plan to repay the loan over 30 years with equal annual payments. What is the dollar amount of the principal to be repaid in your second payment? The interest is 9%.

1 Answer

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  • AJIT KUMAR
    10 years ago
    Favorite Answer

    1. 5.50/50 or 11%

    2. 3,999 or 4000

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