Based on the following table, determined which statement is the most accurate (Hint: you should first calculate dividend yield and P/E ratio for each):

	Stock ABC	Stock XYZ
Stock Price	$45	$100
Dividend	$2	$1.50
Earnings	$6.67	$1.12

	A.	ABC pays a higher dividend and is relatively inexpensive based on its Price/Earnings ratio
	B.	ABC has a higher dividend yield but is relatively expensive based on it Price/Earnings ratio
	C.	XYZ has a higher dividend yield but is relatively expensive based on it Price/Earnings ratio
	D.	XYZ pays a lower dividend but it relatively cheap based on its Price/Earnings ratio

A 10-year bond with a 5% coupon is currently trading at $98.09 with a yield of 5.25%. If interest rates were to go down by 0.25%, what would be the approximate value of the bond?

	A.	$100
	B.	$97
	C.	$96
	D.	$91

The risk-free rate is 5% and the expected return of the market is 10%. If Vanderlay Industries has a Beta of 1.0, what is the required return?

	A.	5%
	B.	10%
	C.	12.5%
	D.	15%