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The EVA of a firm is $6.25 million and the firm has 2.78 million outstanding shares. What is the maximum amount of dividend that can

The EVA of a firm is $6.25 million and the firm has 2.78 million outstanding shares. What is the maximum amount of dividend that can be paid to shareholders?

a.

$1.65

b.

$4.41

c.

$2.25

d.

$3.89

e.

$3.12

The greater a bond's default risk, the greater the:

a.

maturity value of the bond.

b.

risk of exercise of a call provision on the bond.

c.

investment in the bond by risk-averse investors.

d.

default risk premium (DRP) associated with the bond.

e.

interest rate stability of the bond in the long run.

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