5. A preferred stock will pay a $6.00 dividend this year and selling for $90. It has a $100 Face value. The growth rate for the firm's common stock is 10%. You require an 7% return for this type of investment. The maximum you would pay would be: a. $90.00 b. 6.67% c. $85.71 d. $200.00 e. 7% 6. The company expects to pay a dividend of $2.70 for its common stock this year and they have a constant growth rate of 9%. You require a 13% return on this stock. Based on this information, the maximum you would pay would be if you purchased the stock would be? The stock is selling for $70. a. $67.50 b. $73.58 c. 12.86% d. 13.20% if you want to 7. When the market rate of interest increases, the bond value will sell. a. Increase b. Decrease c. Remain the same d. Not enough information 8. A bond with a $1,000 Face Value, a 5% interest rate, a maturity date of 15 years and currently selling for $953 would give you an expected return of: a. 5.47% b. $1,161 c. 5.00% d. $953 e. None of the above