n7 ed Stock A has an earnings of $10 per share at year 1. The interest rate is 20%, and the return on equity is 2596. If there is no plow- back, how much is the amount of the earnings or profit kept in the firm for each share of the stock at year two? out of Select one: 0 a $3.00 b. $2.00 c. $1.00 O d. 0.00 O e, none of the above 00 Stock A has an earnings of $5 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is no plow- back and you like to buy stock A now and hold it for two years, what is the expected return for your investment ? of Select one: O a. 10.00% Ob 20.00% O c. 25.00% O d. 40.00% O e. none of the above -9 You have borrowed a loan of $20,000 from Chase to buy a car. You have promised Chase to make mortgage style payments in each year. If you want to borrow this loan for one year and the interest rate is 2.5% every year, what is the total payment in year one? at of Select one: O a. $21,500.00 O b. $20,500.00 O c. $15,000.00 O d. $ 25,000.00 O e. None of the above 10 What happens to the price of a one-year bond with a coupon rate of 8% when the interest rate changes from 6% to 8%? of Select one: O a. A price increase of $4.87 O b. A price increase of $53.46 O c. A price decrease of $53.46 O d. A price decrease of $18.87 O e. None of the above