1 When a manager is on the "Expectations Treadmill", which of the following activities are common activities that lead to detrimental outcomes for the company (select the number for any and all that apply): 1) Increasing company leverage. 2) Reducing the weighted average cost of capital (WACC). 3) Pursuing risky major acquisitions. 4) Pursuing unrealistic earnings growth.

2 In theory, if we change an accounting method, and no other changes occur, would this change the company's value? Why or why not?

3True or false: Total Shareholder Returns consists of the amount of dividends plus share repurchases for a given year?