4 A small biotechnology research corporation has been experiencing losses for the first three years of its existence, and thus has a negative balance in retained earnings. The corporation's stock price, however, is $1 per share. Which of the following statements is most correct? Question Select one: a. The corporation's accountants must have made a mistake because retained earnings may not be negative. b. Investors are irrational to pay si per share when earnings per share have been negative for three years. C. The required return on the stock will be small because the company has very few assets. d. Investors believe the stock is worth $1 per share because future earnings (and cash flows) are expected to be positive. n 5 Chester Financial Corp had a return on equity of 18%. The corporation's earnings per share was $4.00, its dividend payout ratio was 30% and its profit-retention rate was 70%. If these relationships continue, what will be the Chester Financial Corp's internal growth rate? ed out of Select one: a. 70.0% g question b. 28.0% C. 5.4% d. 12.6% ion 6 A $1,000 par value 12-year bond with a 9 percent coupon rate recently sold for $980. The yield to maturity is ered ed out of Flag question Select one: a. greater than 9 percent b. 9 percent C. 8.8% d. less than 8%