n their historic levels. The firm's P/E ratio will most likely:（）
A. become undefined.
9.The preferred stock of the Delco Investments Company has a par value of $150 and a dividend of $11.50. A shareholder's required return on this stock is 14%. What is the maximum price he would pay（）
10.Assume a company's ROE is 14% and the required return on equity is 13%. All else remaining equal, if there is a decrease in a firm's retention rate, a stock's value as estimated by the constant growth dividend discount model (DDM) will most likely:（）
C. not change.
11.Which of the following is NOT an assumption of the constant growth dividend discount model (DDM)（）
A. The growth rate of the firm is higher than the overall growth rate of the economy.
B. ROE is constant.
C. Dividend payout is constant.
12.Which of the following is NOT a risk factor for a country's risk premium（）
A. Business risk.
B. Financial risk.
C. Technology risk.
13.An analyst has calculated the following ratios for a firm: Sales/Total Assets: 2.8 Net Profit Margin (%): 4 Return on Total Assets (%): 11.2 Total Asset/Equity: 1.6 The return on equity for this firm would be closest to:（）
14.Which of the following steps is NOT used in the full valuation approach in measuring interest rate risk（）