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10. The required return (using the constant growth dividend model) for a share of stock is equal to: a. Next year's dividend divided by the

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10. The required return (using the constant growth dividend model) for a share of stock is equal to: a. Next year's dividend divided by the current price. b. The increase in the value of a share of stock over one year. c. The percentage rate at which a stock increases in value. d. The capital gains yield plus the dividend yield. e. The payment by a corporation to shareholders in the form of cash or stock. 11. According to the constant growth in dividends price formula given in the textbook, if the dividend to be paid one year from today decreases and all other factors remain constant, the price of the stock will if the growth rate of all future dividends increases and all other factors remain constant, the price of the stock will ; and if the required rate of return increases and all other factors remain constant, the price of the stock will a. Decrease; decrease; decrease b. Increase; increase; decrease c. Decrease; increase; decrease d. Increase; increase; increase e. None of the answers listed above are correct. 12. This morning, Mary bought a ten-year, $1000 par value bond with a 6,5% coupon rate and semi-annual payments. She paid $994 for the bond. If the market interest rate on this type of bond increases to 7% tonight, how much will Mary receive for her first coupon payment? a. $32.50 b. $35.00 c. $65.00 d. $69.58 e. $70,00

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