8. A corporate bond has a coupon rate of 12%, a yield to maturity of 10.55%, a f

Question

8. A corporate bond has a coupon rate of 12%, a yield to maturity of 10.55%, a face value of $1,000, and a market price of $850. Therefore, the annual interest payment is (Points : 1)
$101.75
$102
$105.50.
$120.0


9. If two firms have the same current dividend and the same expected growth rate, their stocks must sell at the same current price or else the market will not be in equilibrium. (Points : 1)
False, because the required return could be different
True, because we are using a dividend valuation model
True if markets are semi-strong form efficient
True if investors are risk-averse


10. Emery Company just paid a dividend yesterday of $2.25 per share. The company's stock is currently selling for $60 per share, and the required rate of return on Emery Company stock is 16%. What is the growth rate expected for Emery Company dividends assuming constant growth? (Points : 1)
9.47%
9.89%
10.87%
11.81%

Explanation / Answer

Sorry, I know only the answer for the question No 9
The right one is False.

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