Nystrand Corporation's stock has an expected return of 12.25%, a beta of 1.25, a disin equilibrium. Ifthenskfre rate is 5 00%, what is the market risk premium? A. 580% B. 5.95% D. 625% C. 6.09% One year ago Lemer and Luckmann Co issued 15-year noncallable 75% annual coup on bonds at their par value of $1 ,000. Today, the market interest rate on these bonds is 55%, what is the current price of the bonds? A. $1,077.01 B. $1,104.62 C. $1,132.95 D. $1,191.79 Which one of the following is a payment of cither cash or shares ofstock that ispid out of eamings to a firm's shareholders? A. Interest C. Retained canings D. Dividend B. Distribution store and is both the 100 percent owner and the store's manager. Which type of business entity does Margie own if she is personally liable for all the store's debts? A. Sole proprietorship C. Corporation B. Limited partnership D. Joint stock company Travis is buying a car and will finance it with a lown which requires monthly payments of $265 for the next 4 years. His car payments can be descnibed by which one of the following terms? A. Perpetuity B. Annuity A. right to contact cach bondholder to determine if he or she would like to extend the term of his or her bonds B. option to exchange the bonds for equity secunities C. right to automatically extend the bond's maturity date D. right to repurchase the bonds on the open market prior to maturity. Which of the following is not a capital component when calculating the weightod average cost of capital (WACC)? B. Common stock A Long-term debt. C. Retained earnings. D. Accouris payable nthod has a mmber of disadvantages Which of the following items is NOT a disadvantage of this The regular paybeck A. Lack of an objoctive, market-determined benchmark for making decisions B Igpores cash flows beyond the payback pariod c. Does D. Does not provide any indication regarding a project's liquidity s not directly account for the time value of money How much would $10,000 due ialco years be worth today ifthedisoort rate were 10%? A S0.73 B$1.21 C $249 D.$483 Municipal bonds are: A geoerally purchased by tax -exempt investors B. risk-free C. issued by federal, state, and local governmental bodies. D. zero-coupon bonds