14. The Dow Jones Industrial Average (DJIA) includes: A. All of the stocks listed on the New York Stock Exchange B. 30 of the largest (by market capitalization), publicly-traded companies based in the U.S. C. 500 firms that are the largest in their respective economic sectors D. 500 firms that are the largest as ranked by Fortune Magazine 15. Stock valuation model dynamics make clear that lower discount rates lead to: A. lower stock prices B. higher stock prices C. lower growth rates D. higher growth rates 16. From observed behavior, people do not discount over: A. Time B. Geography C. Social networks D. None of the above 17. The WACC measures a firm's: A. Dit B. Tot C. Dot Coret D. Dort Terst + Tak 18. MU's WACC = 9.7% and NKE's WACC = 6.2%. Both MU (Micron) and NKE (Nike) are publicly traded companies. This means: A. MU's cost of capital is higher than NKE's B. The market views MU as riskier than NKE. C. Both A and B D. None of the above 19. A stock with a Beta of 1.12 means: A. The stock is 12% more profitable than the SP500. 8. The stock has a P/E of 1.12. C. When the SP500 goes up 1%, the stock goes up 12% on average. D. When the SP500 goes down 1%, the stock goes down 1.12% on average