If government bonds pay 7.0% interest and insured savings accounts pay 5.0% interest, stockholders in a moderately risky firm would expect return-on-equity values of
A) 5.0%.
B) 7.0%.
C) 9.0%.
D) above 7.0%.
D) above 7.0%.
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A Heights Inc. bonds have a coupon rate of 7%, a yield to maturity of 10%, a face value of $1,000,
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