NEED TO DOUBLE CHECK ANSWERS JUST PROVIDE THE ANSWER:

QUESTION 11

Due to their high risk, junk bonds typically sell at a discount

A. True

B. False

QUESTION 12

Due to their high quality, investment grade bonds typically sell at a premium

A. True

B. False

QUESTION 13

A stock's current price is $58 and you expect the stock to rise to $62 if a dividend increase is announced by the company. Within the period, the stock is expected to pay a dividend of $1.50. Calculate your rate of return

		A. 9.483%
		B. 6.70%
		C. 2.586%
		D. None of the above

QUESTION 14

A stock's current price is $58 and you expect the stock to rise to $62 if a dividend increase is announced by the company. Within the period, the stock is expected to pay a dividend of $1.50. Calculate your expected dividend yield

		A. 9.48%
		B. 6.70%
		C. 2.586%
		D. None of the above

QUESTION 15

Which of the following statements about market efficiency is MOST correct?

		A. An efficient market is one in which security prices fully reflect all relevant and available information about a security. Any deviations are quickly corrected.
		B. An efficient market is one in which security prices fully reflect all public and private information regarding that security. Overreactions are short lived.
		C. An efficient market is one in which security prices fully reflect all historical price and volume information regarding that security. The security's price reflects its intrinsic value.
		D. None of the above

QUESTION 16

In the first quarter of 2008, the following financial data were given for Exxon-Mobile (symbol: XOM): market cap = $501 billion, EPS = $7.69, stock price = $94.80. What is the company's P/E ratio?

		A. 15.36
		B. 12.32
		C. 5.28
		D. None of the above