22 Based on Case 3 , what is the conversion premium of the Musang King Bond? * (2.5 Points) 23 Which of the following assumptions is required by the constant-growth dividend discount model? * (1 Point) Dividend is constant Required rate of returned is lower that the dividend growthh rate Dividend growth rate continues indefinitely All of the above 24 Which of the following statements most accurately describes systematic risk? * (1 Point) It leads to default and frequently even bankruptcy. It can be reduced to zero by diversifying an investment portfolio across enough different assets. It is caused by factors that affect only low-quality market assets. It is caused by changes in the political, economic or sociological environment that affect all assets at the same: time 25 Stock valuation is important because of (1 Point) the company wants to go public. stock holders can exercise the conversion on bonds to minimise the shareholders wealth none of the above The most important issue in the stock valuation process is a company's (1 Point) past earning records historic historic dividend growth rate expected future returns capital structure 27 In the Price /Earnings approach to stock valuation * (1 Point) historical stock prices are utilised fs forecasted EPS are typically used the P/E ratio is computed by multiplying the stock price by the earning per share the market P/E ratio, adjusted by beta, is used to value individual stocks 28 Which of the following are key inputs to determining the value of an asset? 1- the required rate of return II - future cash flows III- current stock price IV-timing of future cash flows * (1 Point)