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If a 7% coupon bond is trading for $975.00, it has a current yield of: a) 7.00%. b) 7.24%. 8.53%. d) 7.18%. The is the

If a 7% coupon bond is trading for $975.00, it has a current yield of:

a) 7.00%. b) 7.24%.

8.53%.

d) 7.18%.

The

is the fraction of earnings reinvested in the firm.

  1. dividend payout ratio
  2. plowback ratio
  3. dividend payout ratio and plowback ratio
  4. none of the above

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