1. Company A's stock price increased $2.00 and paid an annual dividend of 51.25. The stock price is expected to grow by 7. Assuming a 10 required rate of return, what is the stock's price? a $13 b. $45 c. $71 d. $116 2. Company ABC is issuing a 5 year bond with an annual coupon of Competitive bonds have a 3% coupon what is the present value of Company ABC's bond? a $913 b. $1.044 c. $1,092 d. $1,219 3. A premium priced bond pays 10% annually. The investor's rate of return is a. Equal to 1096 b. 1086 d. Not enough information 4. A discount priced bond's YTM is equal to: a. Current yield b. YTC C. Nominal yield d. None of the above. 5. You are looking for a stock that yields a 6% dividend. Last quarter's dividend was $2.00. If your required rate of return is 8%, what is the most you would pay for the stock? a. $10 b. $27 C. $106 d. $424 A 6 year bond pays semiannually and is priced at $800. The YTM is 14%. What is the annual coupon rate? a. 9% b. 14% C. 16% d. 17%