Question 5 (25 points) True or false? First state your answer and then briefly explain it. a) Since current stock price is the sum of future discounted dividends, if a company wants to increase its stock price, it should increase its dividend payout rate. b) Company A is in the IT industry, and Company B is in the Media industry. In this case, we could not use PEG ratio to evaluate whether there is a trading bargain on Company A or Company B, because they are in different industries so they have different growth opportunities. c) If Credit Default Swap (CDS) Spread is high, entering into the protection seller leg is a good investment opportunity, because by doing so you could collect high premiums. d) You have two treasury bonds in your portfolio: Bond A is a 10 year coupon bond with coupon rate 10% paid annually; Bond B is a 10 year coupon bond with coupon rate 10% paid semi-annually. These two bonds are exposed to same level of interest rate risk. e) Amazon and Google are both rated as AAA by Moody's. It implies that a bond portfolio manager could choose to invest in either of them while at the same time maintains similar level of credit risk of her portfolio