QUESTION 4 Ace Ventura, Inc. has expected earnings of$6 per share for next year. The firm's ROE is 15% and its earnings retention ratio is 40% f the growth stock), what should its current stock price (intrinsic value) be? O A $75 m's market capitalization rate required rate of retur is 10% constant B. $60 O C. $90 D. $50 E. $120 QUESTION 5 measures effective bond maturity? A. Yield to maturity None of the answer selections C. Convexity D Duration QUESTION 6 Bonds with coupon rates that fall when the general level of interest rates rise are called O A. Convertible bonds O B. Invertible bonds O C. Pay in kind bonds D. Inverse floaters O E. Index bonds