oo 2 1. On August 29th, 2020, you buy a share of Emerge Energy Services Stock (EMES) after getting a hot tip. The purchase price was $144.17. After what was a bit of a tough year, you sell the stock on August 29, 2021, for $17.88. Assume EMES paid a dividend of $7.25 the day before you sold the stock. What was your return? a. -87.59% b.-82.57% c. -92.63% d. -66.68% 2. There is a stock that is currently trading at $20.16. Yesterday the stock paid an annual dividend of $1. You anticipate that the price will increase by 13% during the year, and that next year's annual dividend be 15% greater than the one just received. What is the equity cost of capital for one year? a. 14.00% b. 13.10% c. 20.61% d. 18.70% 3. You purchase a $1,000 face value bond with a coupon rate of 8% for $1,200. Next year, the bond's price has dropped to $1,174.16. What can you say about the bond, holding market conditions constant? a. The bond's coupon rate is greater than the yield to maturity, making it a premium bond. b. The bond's coupon rate is less than the yield to maturity, making it a discount bond b. The bond's coupon rate has changed, altering its present value. c. We cannot say any of the above without knowing the yield to maturity