13) A firm increases its plowback ratio (earnings retention ratio). All else equal, you know that a) Earnings growth will increase and its P/E ratio will increase b) Earnings growth will decrease and its P/E ratio will decrease c) Earnings growth will increase and its P/E ratio will decrease d) Earnings growth may or may not change, but its P/E ratio will definitely increase e) Earnings growth will increase, but its P/E ratio may or may not change Page 3 of 10 14) A stock is priced at $45 per share. The stock has earnings per share of $3 and a market capitalization rate of 14%. What is the stock's PVGO? a) $23.57 b) $15 c) $19.78 d) $21.34 e) $22.48 15) if the coupon rate on a bond is 4.5% and the bond is selling at a premium, which of the following is the most likely yield to maturity on the bond? a) 4.3% b) 4.5% c) 4.7% d) 4.9% e) None of the above