10. Advanced Automotive Systems, Inc. (AASI) issued bonds on November 1, 2017. The bonds had a coupon rate of 4.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on November 1, 2027. What is the intrinsic value to the nearest dollar) of an AASI bond on November 1, 2021, to an investor with a required return of 6%? a. $888 b. $925 c. $916 d. $947 11. Fresh Market Foods, Inc. expects its current annual $3 per share common stock dividend to remain the same for the foreseeable future. Therefore, the value of the stock to an investor with a required return of 15% is . $ 4.50 b. $ 3.53 c. $20.00 d. $45.00 12. Which of the following statements concerning preferred stock is most correct? a. Preferred stock is valued the same as zero coupon bonds because the cash flow patterns are similar. b. If a corporation issues 4% preferred stock with a par value of $100, the dividend will increase by 4% per year. c. Preferred stock dividends are typically the same each year, allowing a preferred stock to be valued as a perpetuity. d. Preferred stock dividends are calculated as a percentage of common stock dividends, although the preferred stock dividends must be paid first. 13. Miller's Aviation, Inc. (MAT) paid a dividend today of $3.50 per share. The dividend is expected to grow at a constant rate of 8% per year. If MAI stock is selling for $75.60 per share, the stockholders' expected rate of return is a. 12.63% b. 12.53% C. 13.00% d. 14.38% 14. Giancarlo's Ristoranti Italiano, Inc. just paid a dividend of $4 per share. Future dividends are expected to grow at a constant rate of 6% per year. What is the value of the stock if the required return is 12%? a. $33.33 b. $40.00 c. $66.67 d. $70.67