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4. Which of the following statements is true, holding all else equal? I. If inflation increases and investors' real rate of return stays the same,

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4. Which of the following statements is true, holding all else equal? I. If inflation increases and investors' real rate of return stays the same, bond prices tend to decrease II. If investors' real rate of return decreases and inflation stays the same, bond prices tend to increase III. If the yield to maturity on a bond increases, the bond's coupon rate will increase I onl II only 1 and 11 only II and III only C. e. I, II, and III 5. Assume a firm has sales of $2,750 on assets totaling $1,500, net income of $100, and dividends of $30. What is the sustainable growth rate if the equity has a value of $500? 20.0% 6.4% C. 12.7% -16.3%

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