Chadron Motors is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $.86 a share but all future dividends will be decreased by 3.5 percent annually. What is a share of this stock worth today at a required return of 17.5 percent?

• A. $3.90
• B. $3.95
• C. $3.41
• D. $3.06
• E. $3.59

You are buying a bond at a clean price of $1,134. The bond has a face value of $1,000, a coupon rate of 3.8 percent, and pays interest semiannually. The next coupon payment is four months from now. What is the dirty price of this bond?

• A. $1,176.67
• B. $1,146.67
• C. $1,000.00
• D. $1,180.00
• E. $1,155.83