Question 51 1 pts Starry Night Mattresses (SNM)just paid a S3 dividend to its common stockholders (ie, D. - $3). The company expects to grow at a constant rate of 4 percent indefinitely in the future. If SNM's common stockholders require a 12 percent retum to invest in the company, what should be the current price of its stock? O $37.50 $39.00 $75.00 $25.00 $18.75 Question 52 1 pts Underground Artists (UA) issued a bond six (6) years ago. The bond's coupon rate of interest is 7 percent. Its maturity valutis 51,000, and a matuten 14 years from today The existing market rate of return on the bond, which is is yell to maturity (YTM), is 4 percent. What was the market rate of teturn when the bond was issued six years ago? O 70% Between 7 percent and 14 percent O 110X 40% 5.5% desion 48 1 pts If a corporation is liquidated, which of the following groups of investors would be paid fest? O preferred stockholders All the investors who provide funds to a particularm are paid at the same time Both bondholders and preferred stockholders are paid at the same time. bondholders common stockholders > Question 49 1 pts Ha bond is selling for a promium, its yield to maturity (YTM) must be its coupon rate of interest There is not enough information to answer this question O equal to less than O greater than 1 pts Question 50 Everything else equal, if the risk associated with an investment increases what should happen to the market price of that investment? The investment's market price should increase The investment's market price should decrease If the investment has already been issued, its market price should not change. The direction of the change in the market price depends on the magnitude of the increase a large increase in risk will cause the price to decide whereas amatieasers will res in a price increase