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17) 17) You own 850 shares of Western Feed Mills stock valued at $53.15 per share. What is the dividend yield if your total annual

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17) 17) You own 850 shares of Western Feed Mills stock valued at $53.15 per share. What is the dividend yield if your total annual dividend income is $1.256? A) 2.78 percent B) 2.13 percent C) 2.54 percent D) 2.67 percent E) 1.83 percent 1 8) 18) Which one of the following statements is correct based on the period 1926-20167 A) U.S Treasury bills have a zero variance in returns because they are risk-free. B) Long-term government bonds had more volatile annual returns than did the long-term corporate bonds. 0 C) The risk premium on small-company stocks was less than 10 percent. D) The standard deviation of the annual rate of inflation was less than 3 percent. E) The risk premium on all U.S. government securities is 0 percent. 19) 19) Unsystematic risk: A) is measured by beta. B) is compensated for by the risk premium. C) is measured by standard deviation. D) can be effectively eliminated by portfolio diversification. E) is related to the overall economy. 20) 20) The Pet Market has $1,000 face value bonds outstanding with 21 years to maturity, a coupon rate of 6.4 percent, annual interest payments, and a current price of $892. What is the aftertax cost of debt if the combined tax rate is 24 percent? A) 5.65 percent B) 4.61 percent OLA C) 6.79 percent D) 7.43 percent E) 7.08 percent DES 21) The expected rate of return on a stock portfolio is a weighted average where the weights 21). are based on the WOg svo gott and blood baze M OU ONTS A) cost per share of each stock held. 31. mes to B) number of shares owned of each stock. sobivado C) market price per share of each stock. D) original amount invested in each stock. E) market value of the investment in each stock

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