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Rooney Industries has a bond outstanding with 15 years to maturity, an 8.7 and % coupon paid a 1,000 par value. The bond has a 6.50% nominal yield to maturity, but i' can be called in 6 years at a call value of $1,100. What is the bond's nominal yield to call? a) 5.27% b) 5.54% c) 5.89% d) 5.99% e)6,00% 8. A bond paying annual interest is reported as having an ask price of 105.23 of its par value. If the last made 4 months ago and the coupon rate is 5%, the dirty price or the bond will be is interest payment was a) 103.56 b) 105.23 c) 106.90 d) 107.23 e) 107.73 Pickford Inc.'s stock has a required rate of return of 10%, and it sells for S67.50 per share. The dividend is expected togrow at a constant rate of 6.00% per year, what is the expected year-end dividend. Di and will the stock price be in 1 year? a) $2.70/71.55 b) $2.70/67.50 c) $2.85/71.55 d) $2.85/71.55 e) There is not enough information given to answer the question 10. Which of these statements is TRUE? a) Dividends on preferred stocks are tax deductible to individual investors but not to corporate investors b) Preferred stockholders have voting power c) Investors can force a company in bankruptey for non-payment of preferred dividends d) Common dividends cannot be paid if preferred dividends are due on cumulative preferred stock Godin Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 8.25%, they pay interest semiannually, and they sell at a guotedprice of 85, what is the bond's nominal coupon interest rate? 11. a) 3,05% b) 3.41% c) 6.10% d) 6.52% e) 6.82% 12. The common stock of Auto Deliveries sells for $28.56 per share. The stock just paid a dividend of SI. per share. The firm has established a pattern of increasing its dividends by 2.84 continue to do so. What is the expected market rate of return on this stock? % annually and expect a) 4.94% b) 6.42% c) 7.08% d) 7.78% e) 792%

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