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Only one answer per question is correct.

1. Kryptonite preferred stock has a par value of $25 and pays a 2.76% semiannual dividend. The current selling price of one share of Kryptonite preferred stock is $38.68. What is the annual return for one share of Kryptonite preferred stock?

A. 1.78%

B. 3.57%

C. 5.52%

D. 11.04%

E. 14.27%

2. Lois Lane is considering the purchase of preferred stock in The Daily Planet. According to the financial pages, the $50 par value Daily Planet preferred stock pays a 1.25% quarterly dividend and has an annual required rate of return of 5.50%. If Lois Lane decides to purchase preferred stock in The Daily Planet, what is the price she will pay today for one share of The Daily Planet preferred stock?

A. $22.72

B. $27.50

C. $45.45

D. $50.00

E. $90.91