Question: 7. In the formular = (D./P.) + g, what does g represent? a. the expected capital gains (or, price appreciation) yield from a share of

 7. In the formular = (D./P.) + g, what does g

7. In the formular = (D./P.) + g, what does g represent? a. the expected capital gains (or, price appreciation) yield from a share of common stock. b. the expected dividend yield from a share of common stock. c. the dividend yield from a share of preferred stock. d. the interest payment from a bond. e. None of the above. 8. The expected average annual rate of return on a bond if bought at its current market price and held to maturity is called the bond's: a. yield to maturity. b. current yield. c. coupon yield. d. capital gains yield. e. holding period return. 9. Convertible bonds: a. Allow the security holder to convert the bond into cash at any time during the life of the bond. b. Allow the security holder to convert the bond into products or services that the company sells. c. Allow the security holder to convert the bond to another security, usually equity, according to some pre-specified terms. d. Allow the security holder to convert the bond into another bond with a higher coupon rate if interest rates on bonds increase before the convertible bond matures. e. None of the above

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