A firm has an expected dividend next year of $1.00 per share, a zero growth rate of dividends, and a required return of 10 percent. The value of a share of the firm's common stock is ______.

A. $120 B. $10 C. $12 D. $100

The return on a portfolio is

		A. the sum of the betas of all assets in the portfolio.
		B. irrelevant, only the betas of the individual assets are important.
		C. does not change over time.
		D. is the weighted average of the returns the individual assets included in the portfolio.

The current yield on the bond for question number 14 (

A firm has an issue of $1000 par value bonds with a 12 percent stated interest rate outstanding. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 16 percent, the firm's bond will sell for ______ today.)

is:

		A. 14.87%
		B. 12.00%
		C. 9.34%
		D. 12.77%