Reference no: EM132467733
Question 1: Market equity beta measures the covariability of a firm's returns with the returns of:
a. all securities in the market.
b. all industry competitors in the market.
c. all firms of comparable market value.
d. risk free securities.
Question 2: Another term for earnings power is:
a. sustainable earnings.
b. net change in equity.
c. nonrecurrent gains.
d. nonrecurrent revenue.
Question 3: As a firm progresses through the growth life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?
a. dividends
b. stock buy-backs
c. issued debt
d. paying down of debt
Question 4: The two most popular discounted earnings models appear to be:
a. price-cash flow and dividend discount.
b. sales/market capitalization and price-earnings.
c. free cash flow and dividend discount model.
d. discounted abnormal earnings and residual income.