#32 #33 #42 #41

need help ASAP!!!

Remaining Time: 21 minutes, 30 seconds. Question Completion Status: The market value of a bond will be less than the value if the required rate of return of investors is above the coupon interest rate O True False QUESTION 32 Candy Land common stock paid $1.48 in dividends last year and is expected to grow indefinitely at an annual 6% rate. What is the value of the stock if you require an 11% rate of return? O $35.75 O $31.38 O $22.41 O $14.46 QUESTION 33 AT&T Inc. (T) has a preferred stock issue outstanding on which it pays an annual dividend of $1.95. The stock price is currently at $36.91. If the company were to sell a new issue of preferred stock today with the same characteristics as its outstanding issue, it would incur flotation costs of $1.23 per share. What would you estimate the cost of preferred stock financing to be for the firm? Click Save and Submit to save and submit. Click Save All Answers to save all answers. Type here to search maining Time: 23 minutes, 32 seconds. estion Completion Status: C O $22.41 O $14.46 QUESTION 33 AT&T Inc. (U) has a preferred stock issue outstanding on which it pays an annual dividend of $1.95. The stock price is currently at $36.91. If the company were to sell a new issue of preferred stock today with the same characteristics as its outstanding issue, it would incur flotation costs of $1.23 per share. What would you estimate the cost of preferred stock financing to be for the firm? O 6.57% 5.32% O 5.47% O 6.31% QUESTION 34 A common stock is selling for $60 and paid a $3 dividend last year. Its value is expected to increase each year at 6.3% growth rate. What is the expected rate of return? 11.62% Click Save and Submit to save and bent. Click Save All Are to save all answers Type here to search Can be converted into a predetermined number of shares of common stock O All the above QUESTION 42 Which of the following is NOT true regarding risk? O Risk is the potential variability in returns on an investment. O The lower the uncertainty as to the exact outcome, the greater is the risk. O Risk may be measured in terms of the standard deviation of rates of return O Risk may be measured by the variance of rates of return. QUESTION 43 If the growth rate increases, the price of the stock will Click Save and Submit to save and submit. Click Save All Answers to save all answers. O $7,596 O $6,218 QUESTION 41 Which of the following are characteristics of preferred stock? It has no fixed maturity date O It has protective provisions which come into effect in the event of non-payment of dividends O Can be converted into a predetermined number of shares of common stock O All the above QUESTION 42 Which of the following is NOT true regarding risk? O Risk is the potential variability in returns on an investment. O The lower the uncertainty as to the exact outcome, the greater is the risk