QUESTION 2 points e Answer Bonds issued by VIX Industries have a ...

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QUESTION 2 points e Answer Bonds issued by VIX Industries have a par value of $1,000. The bonds are currently selling for $885.5 50. They have 10 years remaining to maturity. The coupon rate is 8% and the coupon payment is paid semiannually. What is the bonds yield to maturity? Oa.9.82% (b.10.57% Oc.11.39% (d.7.26% QUESTION 2 2 points Save Answer WMT Enterprise has bonds with face value of $1,000 on the market making annual payments, with 10 years to maturity, and selling for $1,146.80. At this price, the bonds yield 6%. What must the coupon rate be on Merton Enterprise is bonds? Oa.6% Ob.60 Oc.8% O d.80 QUESTION 3 2 points Save Answer A MU Industries bond has a 10% coupon rate and a $1,000 face value. Interest is paid semiannually, and the bond has 15 years to maturity. If investors require an 8% yield, what is the bond is value? Oa $1,172.9 Ob.$948.7 Od.$1,138.2 QUESTION 2 points Save Answer ABC Co. has just paid a cash dividend of $2.1 per share. Investors require a 16% return from investments such as this If the dividend is expected to grow at a steady 9% per year, what is the current value of the stock? Oa $34.9 (b.$32.7 Oc.$36.3 O d.$30.1 QUESTION 2 points Save Answer Following Question 4. what will the stock be worth in five years? Oa $59.68 (b.$50.31 O° $52.25 O d.$56.73 QUESTION 6 2 points Save Answer XYZ Corporation will pay a $4.5 per share dividend next year. The company pledges to increase its dividend by 4% per year, indefinitely. If you require a 10% return on your investment, how much will you pay for the company stock today? O $71.43 (b.$43.75 Oc.$75 Od.$41.67 QUESTION 7 1 points ve Answer Suppose we observe a stock selling for $40 per share. The next dividend will be $1 per share. and you think the dividend will grow at 12% per year forever. What is the dividend yield? Oa 14.5% Ob.12% Oc.2.5% QUESTION 8 1 points Save Answer Following Question 7. what is the capital gains yield? Oa.12% (b.2.5% 0° 14.5% Od.2.8% QUESTION 2 points Save Answer Following Question 7. what is the total required return? Oa 14.5% (b.2.5% c.2.8% Od.14.8% QUESTION 10 2 points Save Answer TXN. Inc. has an issue of preferred stock outstanding that pays a $6.3 dividend every year, in perpetuity. If this issue currently sells for $78.86 per share, what is the required return? Oa 74.86% Ob.7.42% Oo 79.89% Od.7.99% QUESTION 11 2 points Save Answer BGN, Inc. just paid a dividend of $4. The dividend is expected to grow at a 30% rate for the next 3 years and at a 10% rate thereafter. What is the value of the stock if the required rate of return 20%? Oa $70.06 b.$87.60 Oc.$75.31 O d.$84.92

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