The dividend payout ratio is? A. One minus the retention ratio. B. One minus the plowback ratio . The percentage of net income not reinvested in the company. D. A and B E. All of the above 12. If a US. company is highly profitable has and a cost of Equity of 5.6% and an er tax cost of debt of 6.2% and increased risk is not a major concern they should find their new projects with tA. Equity C. Debt D. none of the above B. Preferred stock 13. If a bond has quarterly payment of 10.75 and a current price of 1036.55 with 5 years to maturity what is the YTM A. B. 8.75% 1.75% C, 4.3% rhone of the above 14. If you intend to create an endowment for a scholarship and you wish to start giving out the scholarship at the end of ten years from now and you know you will get a 3% return. How much will you be able to give away each year if save 10,000.00 per year until then? (Hint: N- 10) A. 10,300.00 B. 3,000.00-3,200.00 D. 300.00-310.00 C. 300,000-350,000 3400.00-3500.00 15. If the profitability index is one and initial costs are 411,000.00 what is the NPV? A. 411,000.00 C. one E. none of the above 8. The discount rate D zero 6. If a company has paid dividends in the last four years of 7.00, 1.00, 2.00, and 5.00 respectively and the next dividend will be 4.75The price of the stock is 80.00. The stock risk is equal to the overall market and the t-bill rate is 1.2 % and the market risk rate is 8%, what is the cost of equity? A 092 one of the above B. 109 D. .08