A company with a bond rating of BBB is more likely to have which of the following qualities compared to a company with a bond rating of B? A) little use of subordinated debt B) greater reliance on equity financing C) high variability in past earnings D) small firm size What is the expected rate of return on a bond that matures in 5 years, has a par value of $1,000, a coupon rate of 11.5%, and is currently selling for $982? Assume annual coupon payments. A) 12.7% B) 12.5% C) 12.0% D) 13.4% Which of the following statements concerning the constant growth dividend valuation model is true? A) The required rate of return must exceed the growth rate. B) The required rate of return must be equal to the growth rate for dividends. C) The growth rate must increase every year. D) The dividend growth rate must be bigger than 8%