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12) AB Co stock pays a constant annual dividend, sells for $56.07 a share, and has a market rate of return of 12.2 percent. What

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12) AB Co stock pays a constant annual dividend, sells for $56.07 a share, and has a market rate of return of 12.2 percent. What is the amount of the next annual dividend? B) $6.84 A) $6.21 C) $5.67 E) $7.30 D) $5.94 13) 13) Dexter Mills issued 20-year bonds one year ago at a coupon rate of 10.2 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM is 8.2 percent, what is the current bond price? A) $1,098.00 B) S1,190.93 C) $985.55 D) $991.90 E) $1,142.16 14) 14) According to the Rule of 72, you can do which one of the following? A) Triple your money in 7.2 years at 7.2 percent interest B) Approximately double your money in 11 years at 6.55 percent interest C) Double your money in 7.2 years at 8 percent interest D) Approximately triple your money in 7.2 years at 10 percent interest E) Approximately double your money in five years at 7.24 percent interest 15) 15) John's Auto Repair just obtained an interest-only loan of $35,000 with annual payments for 10 years and an interest rate of 8 percent. What is the amount of the loan payment in Year 8? A) $4,280.00 B) S4,918.07 C) $5,216.03 D) $2,800.00 E) $5,211.06 16). 16) Four years ago, Saul invested $500. Three years ago, Trek invested $600. Today, these two investments are each worth $800. Assume each account continues to earn its respective rate of return. Which one of the following statements is correct concerning these investments? A) One year ago, Saul's investment was worth less than Trek's investment. B) Three years from today, Trek's investment will be worth more than Saul's. C) Trek earns a higher rate of return than Saul. D) Trek has earned an average annual interest rate of 9.86 percent. E) Saul has earned an average annual interest rate of 12.64 percent

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