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You're considering an investment in 11-year, $1,000 face value bonds that pay 8% annually and sell for $865. If you do make the purchase, how

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You're considering an investment in 11-year, $1,000 face value bonds that pay 8% annually and sell for $865. If you do make the purchase, how much will you earn? Select one: O O O a, 1009% b. 8.00% . 7.23% d. 10.00% e. 9.89% Retained earnings don't pay interest or dividends, but investors still expect to earn a return on the earnings that the firm reinvests on their behalf. Use the following information to estimate an investor's required rate of return. 3.00% 11.00% 600% 7.50% Risk free rate = Market rate- Growth: Borrowing rate : Beta1.005 Today's price $20.00 Anticipated dividend $1.50 Tax rate = 25.00% Select one: O a. 11.04% b. 11.02% C. 14 06% d. 11.06% O

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