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Firms paying a stock dividend can expect: Select one: O A. An increase in the book value of stockholders' equity O B. An inevitable increase

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Firms paying a stock dividend can expect: Select one: O A. An increase in the book value of stockholders' equity O B. An inevitable increase in the stock's market value O C. An inevitable decrease in the stock's market value Neither an increase in the book value of stockholders' equity nor an inevitable increase in the stock's market value Rickie is CFO of Fowler Inc. Rickie has been asked by his CEO What is the payout ratio for FI? Rickie states the Fl earned $15 million last year and retained $9 million. Fl has 5 million shares outstanding, and the current price of Fl shares is $30 per share. Select one: O a. 2.67% Ob.4% O c. 40% Od. 60% CO Patrick is the CFO of Reed Inc. Patrick says that I earned $13 million last year and maintains a 30% dividend payout ratio. The company has 2 million shares of common stock outstanding and a P/E ratio of 10. What is the dividend yield for RI? of 1 Select one: O A. 1.50% B. 2.50% O C. 3.00% O D. 4.50% A company has 10 year bond outstanding with a BBB rating and the bond is currently selling at par. The bond has a coupon rate of 8% with interest paid semiannually and $1000 par value. You suddenly learn that the bond rating has changed and that the new bond price is $780. What can you conclude? Select one: O a. That the bond rating was lowered and that the new yield to maturity is 11.81%. b. That the bond rating was raised and that the new yield to maturity is 11.81%. O c. That the bond rating was lowered and that the new yield to maturity is 11.87% O d. That the bond rating was raised and that the new yield to maturity is 11.87% Rowdy Caynine Inc. has a $1,000 par value bond with a 6-year maturity. The bond has a 6% coupon rate which is paid annually and a 4% yield to maturity. What is the bond price? Select one: O a. $1,104.84 O b. $314.52 Oc. $1,314.52 O d. $1,074.84

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