Given that a$5000 par value bondmatures in 16 years with an annual coupon rate of 3.7% paid semi-annually and a yield to maturity of 3.9%, the current market price should be closest to

Group of answer choices

$5,807.12

$4,881.80

$6,920.82

$5000.00

In general, a stock is attractive to investors if its VRE ratio is __________.

Group of answer choices

greater than 0, but less than 1.0

negative

none of the answers are correct

equal to or greater than 1.0

According to S&P Global on investing in dividend growth stocks, the S&P High Yield Dividend Aristocrats has consistently had dividend growth for more than 20 consecutive years and higher yields than its benchmark because _________________.

Group of answer choices

a. dividend growth stocks always have low P/E ratios

b. dividend growth investing combines the benefits of compounding the growth of dividends per share, compounding reinvested dividends, and share price appreciation

c. the portfolio managers have simply been lucky for the past 20 consecutive years

d. dividend growth investing focuses on screening for stocks with strong sales growth

Assume that you own a 2-year, 10-year and 30-year bond (years to maturity) and all of the same quality.All have the same coupon rate = 7%.The only difference in the bonds is in the years to maturity.Further assume that required YTM on all of these bonds increases by 2 percent and that you observe the following changes in prices on these bonds:

-3.6%

-20.6%

-13.0%

Without using a calculator, which bond's price changed by -20.6%?

Group of answer choices

a. 2-year bond

b. 10-year bond

c. 30-year bond

d. all bond prices should have changed by -20.6%

Given the Macaulay duration for a semiannual 7.5% bond with 5 years to maturity and a yield of 6.75% is equal to 4.2740 years and the convexity is equal to 20.80, if interest rates fall by 0.5% what is the change in the bond price based on duration alone?

Group of answer choices

a. -4.134%

b. +4.134%

c. -2.067%

d. +2.067%

Multiple studies have shown that price-to-book value (P/B) is the most effective valuation measure in determining a stock's performance. Although the price-earnings ratio (P/E) is considerably more popular, buying at low price-to-book multiples leads to better returns. Its compelling use as a measure of valuation can be explained in one statement:

Group of answer choices

a. A low quality company should always sell for a price that is greater than its theoretical liquidation value.

b. Any company always sells for a price that is less than its theoretical liquidation value.

c. none of the answers are correct

d. No high quality company should sell for a price less than its theoretical liquidation value.

The median current P/E ratio for a set of comparable firms is equal to 15.Assume that it is the appropriate P/E ratio to use when estimating a relative value for a share of common stock for a target firm.Given that the current Earnings per Share for the target firm is $3.00, what is estimated price per share for the target firm?

Group of answer choices

a. $45.00 per share

b. $126.00 per share

c. $63.00 per share

d. $70.00 per share

The price-sales relative compares a company's price-sales ratio to the market or industry price-sales ratio. A price-sales relative of under 1.0 means that:

Group of answer choices

a. the price-sales ratio is not useful for relative valuation.

b. the stock is trading at the same valuation as the market or industry.

c. the stock is trading at a lower valuation than the market or industry.

d. the stock is trading at a higher valuation as the market or industry.