Who bears the greatest risk of loss of value if a firm should fail? a) Preferred stockholders. b) Bondholders. c) Common stockholders. d) All of the above. c) None of the above. A Corporation just paid a dividend of $0.55 per share, and that dividend is expected to grow at a constant rate of 7.00% per year in the future. The company's beta is 1.2, the required return on the market is 12%, and the risk-free rate is 5.00%. What is the company's current stock price? a) $9.19 b) $10.24 c) $11.87 d) $7.88 e) $10.87 A company just paid a dividend of $1.25, and those dividends are expected to grow at a constant rate of 5% forever. The stock price of this company is $50, what is the stock's expected dividend yield? a) 2.63% b) 3.26% c) 5.00% d) 4.11% c) 12.5% A company's manager believes that economic conditions during the next year will be strong, normal, or weak, and he thinks that the firm's returns will have the probability distribution shown below. If the expected standard deviation of the company is 12%. What's the coefficient of variation of this company? a) 1.25 b) 1.59 c) 1.36 d) 1.08 e) 0.69 A company has a beta equal to 1.35 and a required return of 17% based on the CAPM. If the risk-free rate of return is 3.2%, the exported return on the market portfolio is a) 10.08% b) 11.94% c) 13.42% d) 14.52% e) None of the above Which of the following statements is most correct? a) All else equal, if a bond's yield to maturity increases, its price will fall. b) All else equal, if a bond's yield to maturity increases, its current yield will fall. c) If a bond's yield to maturity exceeds the coupon rate, the bond will sell at a premium over par. d) If a bond's yield to maturity is less than the coupon rate, the bond will sell at a discount from par. e) None of the answers above is correct