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4. The current value of a bond is based: A. on the yield to maturity and the coupon rate. B. on the present value of the coupons plus the Multiple Choice, 32 points, 2 points each. CIRCLE YOUR ANSWER. ich of the following is true about a stock with a ta of 1? e stock has the same unsystematic risk as the ket. The stock is not risky. The stock must be well-diversified. The stock has the same systematic risk as the arket present value of the price. C. on the present value of all future cash flows from the bond. D. on the coupon payments plus par value at maturity 5. The primary goal of financial management is to maximize the: A. current net income. B. the number of shares outstanding. C. price of the stock. D. revenue growth. 2. The current price of a stock is based: A. on the future value of the cash flows derived from the stock. B. only on the anticipated future dividends. C. only on the anticipated future stock price. D. on the present value of all the future cash flows from that stock. 6. If a stock does not pay dividends which of the following must be true? A. The stock must have a value of $0. B. The required return must equal the capital gains 3. Stock A has a capital gains yield of 8% and Stock B has a capital gains yield of 13%. Both stocks have a required return of 14%. Which of the following is FALSE? A. Stock B doesn't pay a dividend. B. Stock B has a higher price growth rate. C. Stock A has a higher dividend yield. D. Stock A MUST have a higher dividend. ield. C. The company is likely to be sued by sharehold D. The market must expect that the stock will d n price

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