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Question 4 (1 point) Saved Matt's Music Factory paid an annual dividend in the amount...

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Question 4 (1 point) Saved Matt's Music Factory paid an annual dividend in the amount of $2.00 per share last week. The dividend growth rate is expected to remain constant at 3%. Matt's also has bonds with a yield to maturity of 5%. The current stock price of the firm is $21, and the firm has a debt-to-equity ratio of 1/3. The company's tax rate is 34%. What is Matt's weighted average cost of capital? 09.64% 10.21% 10.43% 10.86% none of the above Question 11 (1 point) Saved How many of the following statements are true regarding corporate dividend policies? 1. As long as the return on new investments (ROE) is greater than the discount rate higher retention ratio will decrease firm value. II. Retention ratio is the percent of earnings that are distributed to shareholders as dividends. III. Dividend growth models do not take into account the actual value of cash. IV. Higher retention ratio can cause future earnings and dividends to grow even when the ROE is lower than the discount rate

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