Which one of these is included in the yield of a bond with a low credit...

       

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Which one of these is included in the yield of a bond with a low credit rating but not included in a US. Treasury bond yield? Assume both bonds are selling at a premium O Loss of premium O Real rate of return Inflation premium Default premium QUESTION 16 Combined Communications is a riew firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 4 years and then decreasing the growth rate to 35 percent per year. The company just paid its annual dividend in the amount of $0.20 per share. What is the current value of one share of this stock if the required rate of return is 155 percent? O $2.71 12.49 13.05 12.04 O $1.82 QUESTION 17 An analyst who relies on past cycles of stock pricing to make investment decisions is O performing fundamental analysis. Orelying on the random walk of stock prices. O assuming that the market is not even weak-form efficient. O relying on strong-form market efficiency. QUESTION 18 Which of the following are characteristics of a premium bond? 1. coupon rate <yield-to-maturity Il coupon rate> yield-to-maturity Ill. coupon rate <current yield TV. coupon rate> current yield II and III only OI and IV only Olonly I and IV only O and ill only QUESTION 19 What is the present value of a five-period annuity of $3,000 if the interest rate per period is 12% and the first payment is made today? 113,200.00 O$12,112.05 $10,814.33 10,655.65 QUESTION 20 Ferms with valuable intangible assets are more likely to show ain Olow liquidation value. Olow P/E ratio. O excess of book value over market value of equity. high going-concern value. QUESTION 21 What proportion of earnings is being plowed back into the firm if the sustainable growth rate is 8% and the firm's ROE is 20%? 80% 0 40% -20% 0 60% Which one of these is included in the yield of a bond with a low credit rating but not included in a US. Treasury bond yield? Assume both bonds are selling at a premium O Loss of premium O Real rate of return Inflation premium Default premium QUESTION 16 Combined Communications is a riew firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 4 years and then decreasing the growth rate to 35 percent per year. The company just paid its annual dividend in the amount of $0.20 per share. What is the current value of one share of this stock if the required rate of return is 155 percent? O $2.71 12.49 13.05 12.04 O $1.82 QUESTION 17 An analyst who relies on past cycles of stock pricing to make investment decisions is O performing fundamental analysis. Orelying on the random walk of stock prices. O assuming that the market is not even weak-form efficient. O relying on strong-form market efficiency. QUESTION 18 Which of the following are characteristics of a premium bond? 1. coupon rate <yield-to-maturity Il coupon rate> yield-to-maturity Ill. coupon rate <current yield TV. coupon rate> current yield II and III only OI and IV only Olonly I and IV only O and ill only QUESTION 19 What is the present value of a five-period annuity of $3,000 if the interest rate per period is 12% and the first payment is made today? 113,200.00 O$12,112.05 $10,814.33 10,655.65 QUESTION 20 Ferms with valuable intangible assets are more likely to show ain Olow liquidation value. Olow P/E ratio. O excess of book value over market value of equity. high going-concern value. QUESTION 21 What proportion of earnings is being plowed back into the firm if the sustainable growth rate is 8% and the firm's ROE is 20%? 80% 0 40% -20% 0 60%

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Question 15 Which one of these is included in the yield of a bond with a low credit rating but not i... View the full answer