Used in the gordon growth or dividend growth model

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Reference no: EM13914869

1) Careers Unlimited issued a bond, with a $1000 par value, 10 years ago that has 8 years remaining to maturity and an annual coupon rate of 12 percent. The interest payments are made every six months. If the current market price is $1230, what is the yield to maturity?

A. 4%

B. 5%

C. 8%

D. 10%

E. 12%

2) Given the following partial stock quote, what was the closing price on the previous trading day if the firm's earnings per share are $1.85?

Stock(Div) Div yld% close price Net chg

Alpha Ind. 3.2% $16.93 -.16

A. $16.71

B. $16.77

C. $16.89

D. $17.09

E. $17.40

3) Which one of the following represents the capital gains yield as used in the Gordon Growth or dividend growth model?

A. DI

B. DI/P0

C. P0

D. g

E. g/PO

Reference no: EM13914869

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