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Multiple CHOICE questions please answer all question 3. You analysis lead you to believe that price of DEF share to be $30 per share. Its

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Multiple CHOICE questions please answer all question

3. You analysis lead you to believe that price of DEF share to be $30 per share. Its current market price is $25 per share. If you are an analyst with much better than average information, you would A. Buy DEF shares now in anticipation of an increase in share price B. Sell DEF shares now and purchase them at some lower price in the future C. Do nothing since the market price is a far better estimate than your estimate. D. Do nothing since an asset price fully reflects all publicly available information is when the market price of the bond is less than its face value, or when 4. A the bond's coupon rate is lower than the bond's yield to maturity A. discount bond B. par bond C. premium bond D. pure discount bond 5. Which of the following statement is true about bonds? A. A zero coupon bond is a bond in which its market price less than its face value B. A par bond pays no coupon payment C. The price of a bond fell when its yield to maturity decreases. D. When the yield curve is flat (same interest rate across different maturities), the price of any risk-ree discount bond rises over time. 6. A two year coupon bond with a face value of $1000 pays a $50 coupon payment every year. If you're told that the bond's yield to maturity is 5% a year, you would conclude that the price of the bond A. exactly equals to $1,000 B. less than $1,000 C. more than $1,000 D. is indeterminate without information on the bond's coupon rate 7. If dividend grows at a constant rate of 5 percent and the market capitalization rate is 10 percent, what is the current share price when dividend at the end of this year is $10 per share? A. $66.67 per share B. $100 per share C. $200 per share D. $500 per share 8. proportion to the number of shares they own. A. cash dividend B. issuance of new stock refers to a company's decision to distribute cash to all shareholders in 26

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