1. Last year, when the stock of Alpha Minerals was selling for $49.50 a share, the dividend yield was 3.4 percent. Today, the stock is selling for $41 a share. What is the total return on this stock if the company maintains a constant dividend growth rate of 2.2 percent?
6.13 percent
6.58 percent
6.40 percent
6.47 percent
6.38 percent
2. A protective covenant:
protects the borrower from unscrupulous practices by the lender.
guarantees the interest and principal payments will be paid in full on a timely basis.
prevents a bond from being called.
limits the actions of the borrower.
guarantees the market price of a bond will never be less than par value.