1- Your company has no attractive investment opportunities. Its return on equity equals the discount rate, which is 11%. Its expected earnings this year are $4.30 per share. Find the P/E ratio of the firm.

a. 9.09

b. 11.11

C. 35.56

d. 42.68

2- Redeux Industries pays a dividend of $0.87 per quarter. The dividend yield on its stock is reported at 3.4 %. What price is the stock selling at?

a. $102.35 b. $117.06 c. $122.37 d. $137.06

3- In which form of market efficiency is all information contained in the stock price, both public and private?

a. Semi-strong

b. Strong

C. Strongest

d. Week

4- The price of a share of stock immediately increases upon the release of unexpected positive news about a company. This reaction is most closely described by which form of market efficiency?

a. Semi-stron

b. Strong

c. Strongest

d. Week

5- You buy a 5.0 percent coupon, 10-year maturity bond when its yield to maturity is 7 percent. A year later, the yield to maturity is 7.2 percent. What is your rate of return over the year?

a. 4.86%

b. 5.62%

C. 6.03%

d. 7.70%