ABC Company has 100,000 shares of stock outstanding with a market price of $30 per share. If net income for the year is $600,000 and the retention ratio is 80%, what is the dividend per share on the firm's stock? Select one: O a. $2.25 b. $1.20 c. $1.50 O d. $2.00 Assume you have a bond with a coupon rate of 8% and coupons paid annually. The par value is $1,000 and the bond has 4 years to maturity. The yield to maturity is 10%. What is the value of a bond? Select one: O a. $1,063.40 O b. $979.25 O c. $936.60 O d. $1,010 Assume you think a boom and a recession are equally likely to happen, a 50-50 chance of either. State of Economy Probability of Security Returns if State State of Occurs Economy Security L Security U Recession 0.50 -20% 30% Boom 0.50 70% 10% Notice that stock U earns 30% if there is a recession and 10% if there is a boom. Based on the above information, what is expected return on stock U? Select one: a. 18% b. 22% c. 25% d. 20%