Questions 35-37 are based on the following information. Corporate finance. You are the CFO of the Stocks-and-bonds company. Both your company's stock and bonds are traded in the NYSE 35. If you think your company's stock is currently undervalued by the market, you would ike to a. issue b. repurchase some shares. c. issue more bonds. d. call back your company's old bonds and issue new bonds. more shares 36. If you think your company's stock is now substantially overvalued by the market, you would like to a. issue more shares. b. repurchase some shares. c. issue more bonds. d. call back your company's old bonds and issue new bonds 37. You believe the market interest rate has already dropped to the bottom. You would a. issue more shares. b. repurchase some shares. c. call back your company's old bonds and issue new bonds. d. increase your company's cash dividends. Questions 35-37 end 38. The VIC Co. has preferred stock outstanding that pays a $4.50 dividend annually and sells for $48.20 per share. What is the rate of return? a. 9.34 percent b. 7.70 percent c. 8.23 percent d. 8.98 percent 39. A stock's dividends have an expected annual growth rate of 6% forever. Each share just received an annual dividend of $2.50. The appropriate discount rate is 17%. What is the value of this stock? a. $50.05 b. $54.00 c. $29.44 d. $25.20 40. McClary Tires plans to save $20,000, $25,000, $27,500, and $30,000 at the end of each year for Years 1 to 4, respectively. If it earns 3.3 percent on its savings, how much will the firm have saved at the end of Year 4? a. $107,525.40 b. $108,392.69 c. $111,860.57 d. $107,130.78