QUESTION 1 4 points Save Answer John owns a corporate bond with a coupon rate of 12% that matures in 10 years. If interest rates go down to 10%, then: A. The value of John's bond will go up and would sell at a premium B. The value of John's bond will remain unchanged and would sell at face value C. It is not possible to value this bond, D. The value of John's bond will go down and would sell at a discount Save Answer QUESTION 2 4 points Assume that a firm had such serious financial problems that it was about to be liquidated after a bankruptcy. All of the firm's assets are about to be sold in order to pay the following claims against the firm: bondholders, preferred stockholders, common stockholders, and federal income taxes. Of the claims mentioned, what priority would common stockholders have? A. Second B. Fourth C. Third D. First QUESTION 3 4 points Save Answer The Alpha Company's common stock is expected to pay a $4.00 dividend in the coming year. If investors require a 16% return and the growth rate in dividends is expected to be 8%, what will be the market price of the stock? $12.00 $37.50 $50.00 $22.22