Identify the accurate statement or statements below pertaining to the payment of agencies such as

Moody's and S&P$,$ for bond ratings.

A$)$ no other rating agencies exist, hence companies must always pay Moody's and S&P exclusively

B$)$ unrated bonds can be difficult to sell

C$)$ many large investors are prohibited from investing in unrated issues

D$)$ all of t h e s t a t e m e n t s above are accurate

E$)$ only $($B$)$ and $($C$)$ above represent accurate statements

$6.$ In the constant dividend growth model, the highest reasonable growth rate for a stock's dividend

before accounting for inflation is about:

$)10-15\%$

B$)6-6\mathrm{.}5\%$

C$)3-3\mathrm{.}5\%$

$7.$ Based on the dividend growth model, the two components of the total return on a share of stock are:

A$)$ dividend yield and capital gain yield

B$)$ current yield and bond total return

C$)$ compound yield and yield to maturity squared