Epo Pharmaceuticals Inc. has an issue of preferred stock ...

[anshika]

Epo Pharmaceuticals Inc. has an issue of preferred stock outstanding that has a required rate of return of 9 and pays 6 annual dividends. If the preferred share were issued 3 years ago, what is the current price per share?
 
  A) 51.48
  B) 66.67
  C) 86.34
  D) There is not enough information to answer this question.

Question 2

Term insurance differs from whole life insurance in that term
 
  A)
 
  is more expensive per dollar of death protection.
  B)
 
  provides protection only during the term of the policy and not for your whole life.
  C)
 
  is designed for single individuals while whole life is for families.
  D)
 
  is offered only through employer-sponsored insurance programs.

[sierramartinez]

Answer to Question 1

B
Explanation: B) PV = PMT/r = 6/.09 = 66.67.

Answer to Question 2

B

[anshika]

Excellent

[okolip]

Great answer, keep it coming