answer 10 11 12 14

d. conversion feature 7. Which of the following is not a type of equity financing? a. retained earnings b. debentures c. common stock d. preferred stock 8 A preferred stock pays a $4.00 annual dividend. If you require an 12% rate of return on similar risk investments, what is the value of a share of this preferred stock? a. $.48 b. $4.48 c. $33.33 d. $48.00 9. Which of the following types of bonds are issued by state or local governments? a. Treasury notes b. subordinated debentures c. Federal agency bond:s d. municipal bonds 10. The greater the liquidity of a bond the a. lower the interest rate b. higher the interest rate 11, A corporate 9.5% coupon bond has a yield to maturity of 100%. A bondholder will receive how much in interest each year? a. $9.50 b. $10.00 c. $95.00 d. $100.00