1. Last year, when the stock of Alpha Minerals was selling for $49.50 a share, the dividend yield was 3.4 percent. Today, the stock is selling for $41 a share. What is the total return on this stock if the company maintains a constant dividend growth rate of 2.2 percent?

6.13 percent

6.58 percent

6.40 percent

6.47 percent

6.38 percent

2. A protective covenant:

protects the borrower from unscrupulous practices by the lender.

guarantees the interest and principal payments will be paid in full on a timely basis.

prevents a bond from being called.

limits the actions of the borrower.

guarantees the market price of a bond will never be less than par value.