12. Lily Co. paid a dividend of $4.25 on its conconstant rate nt value per company's dividends are expected to gro compute required rate of return on this stock is 12%, compute Co. stock common stock at the end of last year. The at a constant rate of 4.5% indefinitely. If the the current value per share of Lily a. $78.38 b. $72.43 e. $59.22 d. $41.90 3. If the market price of a security is greater than its calculated intrinsic value, the security is considered a. Equally valued b. Fairly valued c. Undervalued d. Overvalued 14. decrease in the value of a security risk refers to the possibility that interest rates will rise and cause a a. Liquidity b. Default c. Interest rate d. Reinvestment 15, Haswell Enterprises, bonds have a 16-year maturity, a 9.4% coupon, and a par value of$1,000. The going interest rte (r) is 8.6%. Assuming semiannual compounding, what is the bond's price? a. $1,376.63 b. $1,208.38 c. $1,143.19 d. $1,068.84 16. Bin Restaurant Corp preferred stock has a market price of $11.50. If it has a yearly dividend of $2.90, what is your expected rate of return if you purchase the stock at its market price? a. 19.45% b. 23.40% c. 25.22% d. 42.43% 4 of 5