43 81462 92540 43 Ala Ltd has as outstarndigg bord osse with an s a par value of 1,00, a cur 867.50 What is the yield to maturity for ent 20 year maturity, and sells for B) 13 64% C) 9.49% D) 8.51% A) 0.22% 25) Paramount, Ie just paid a dividend of $2.05 per share, and the firm is esper ted toexperience constant growth o, 1250% over the foreseeable sture. The common stock is currently selling for s65.90 per share. What is Paramount's expected rate of return for investors? C) 14.2% A) 16.0% B) 17.9% D) 12.5% TRUE/FALSE point each) Cirele T if the statement is true or F' if the statement is false. 26) TFhe agency problem arises due to the separation of ownership and control in a firm 27) T F Dividends paid to a firm's stockholders, both preferred and common stockholders, are tax-deductible to the paying company. 28) T F The lower the average collection period ratio, the more efficient is the firm in managing its investment in accounts receivable. 29) T F Given how some financial ratios relate to each other, an increase in the net profit margin will decrease return on assets. 30) T F Inventory is the least liquid current asset. 31) T F The more frequent the compounding periods in a year, the higher the future value. 32) T F Unsystematic risk can be eliminated through diversification. 33) T F Beta is a measurement of unsystematic risk. 4) T F Long-term bonds are more sensitive to interest rate changes than short-tem bonds. T F Common stockholders are essentially creditors of the firm. If NPV equals zero, then the discount rate used to calculate NPV must equal the project's IRR. T F