32. If Delta airlines expects dividends to be $1.20 every quarter and the required return is 8%, then what is fair price for the stock?

A) $15.00

B) S30.00

C) $60.00

D) none of the above

33. Which of the following is false?

A) Unless a firm is financially distressed we assume in our pricing models that the firm can live on indefinitely.

B) Shareholders face double taxation relative to bondholders.

C) Bondholders of a company are in a less risky position than shareholders if the firm goes to bankruptcy court.

D) The author of the CAPM won a Noble Prize in economics.

E) The CAPM tells you how much capital to invest in a bond