Your firm has a Return on Equity of 8% and a Beta of 1.35.Th…

Your firm has a Return on Equity of 8% and a Beta of 1.35.The firm has earnings of $3 per share and intends to continue it traditional 2/3rds plow-back ratio.The annual dividend was just paid and the consensus estimate for the market is 14% for the next year.U.S. Treasury Bills currently return an annual rate of 6% Calculate the current Price of the Stock Note that you MUST show your work as well as your solution for the current price of the stock

Which of the following statements regarding interest rate se…

Which of the following statements regarding interest rate sensitivity are accurate: I) Inverse relationship between bond price and interest rates (or yields) II) Long-term bonds are more price sensitive than short-term bonds III) Sensitivity of a bond’s price to a change in yields increases at a decreasing rate as maturity increases IV) Sensitivity of a bond’s price to a change in its yield is inversely related to the yield to maturity at which the bond currently is selling. V) An increase in a bond’s yield to maturity results in a smaller price decline than the gain associated with a decrease in yield.