11) Solar Energy, Inc. will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be increasing by 2 percent annually. How much are you willing to pay for one share of this stock if you require a 14 percent return?

Question 11 options:

	$15.14
	$15.42
	$15.78
	$16.12
	$16.62

12) The longer the time to maturity, the lower the coupon rate, the lower the interest rate risk

Question 12 options:

	True
	False

13) The Waffle House pays a constant annual dividend of $1.25 per share. How much are you willing to pay for one share if you require a 25 percent rate of return?

Question 13 options:

	$4.72
	$5.00
	$6.52
	$6.63
	$6.83

14) Investment quality bonds and speculative bonds have similar default risk

Question 14 options:

	True
	False

15) The past five years have earned annual returns of 36.9 percent, 41.3 percent, -28.7 percent, 3.0 percent and 9.6 percent. What is the arithmetic average return?

Question 15 options:

	7.78 percent
	9.26 percent
	12.42 percent
	22.96 percent