1.Which of the following statements regarding compliance to valuation standards by private companies is

most likely true?

A.The standards are widely known by buyers and their compliance is not the

appraisers option.

B.The compliance to standards is facilitated by the fact that all valuations are

generally similar.

C.Ensuring compliance to standards can be difficult because valuation reports

are most; private

2. Future stock sells for $21, next year...s dividend is expected to be $1, its expected ROE is 12%, and its

payout ratio 40% of its earnings. What is Futures... cost of equity?

A.11.10%

B.12.00%

C.7.20%

3.Dexter. interest rate on long-term debt is 12%. Suppose the risk premium is estimated to be 3.5 %.

Estimate Dexter cost of equity.

A.15.5

B.13

C.8.5