- tion 9 A small company struggling to reach profitability just announced a major new government contract that will validate its technology and generate revenue for the next several years. The announcement of the contract will vet vered ked out of 0 Flag question Select one: O a. have no effect on the stock price because the company has not yet paid any dividends b. cause the stock price to increase because kes(the required return) is likely to increase C. cause the stock price to increase because kcs (the required return) is likely to decrease and g (the growth rate in future dividends) is likely to increase d. cause the stock price to decrease because the government usually pays below market price for the goods and services it purchases Topic 1 - alestion 11 The yield to maturity on a bond ot yet nswered larked out of 1.00 P Flag question Select one: : O a. is lower for higher risk bonds b. is fixed in the indenture O c. is the required rate of return on the bond O d. is generally below the coupon interest rate - 12 The yield to maturity on a bond is the rate of return that equates the present value of the bond's future cash flows with the bond's Select one: ut of O a. liquidation value question b. market value O c book value O d. face value Previous page Next page - - "ion 13 Preferred stock valuation usually treats the preferred stock as a et ered Select one: a, capital asset ced out of . b. perpetuity Flag question C. common stock d. long-term bond