12. When using the CAPM, beta is a measure of: a. Specific company risk b. Systematic risk c. Unsystematic risk d. All of the above 13. When using the WACC and CAPM: a. The amount of debt should not influence the equity return b. The debt/equity structure is always determined using public company capital structures c. Beta should be relevered to the assumed capital structure d. A beta above 1.5 indicates that the debt percentage is too high 14. When using the adjusted net assets method, the analyst can adjust the book value to: a. Fair market value b. Replacement value c. Liquidation value d. All of the above e. None of the above 15. The Capitalization of the Earnings Method would be a good method to use when valuing: a. An accounting practice b. A large manufacturing company c. A wholesale auto parts distribution center d. All of the above e. None of the above 16. Company X has a 5-year weighted average income of 15,000,000. There are 1,000,000 shares of capital stock outstanding which is selling currently for $75.00 per share. The PIE ration is: a. 15 b. 5 c. 20 d. All of the above e. None of the above 17. Wings Company has a 5-year weighted average profits of $120,000. The weighted average dividend payout over this same period of time is 25%. The weighted average dividend yield rate of 5 comparable companies is 8%. What is the value of the company? a. 960,000 b. 1,500,000 c. 375,000 d. All of the above e. None of the above