3-If you apply Operating Free Cash Flows model for a firm's valuation, the most appropriate discount rate to use A. Required rate of return based on the capital asset pricing model (CAPM) B. Required rate of return based on the dividend discount model (DDM) C Weighted average cost of capital (WACC) D. Historical cost of debt and equity 6- CAPM considers risk factor(s), whereas APT considers risk factor(s). A. many; two B. many; one C. one; many D. one; one 9- Assume that for a firm, D/E =0.50; k=0,12;g=0.09. If you would expect Ei to be $2.18, then what would be the price of this stock? A. $35.00 B. $36.41 C. $39.50 D. cannot be determined from the information given 12- If the number of securities in a portfolio increases, the amount of unsystematic risk A. increases slowly B. decreases C. Increases D. remains constant 13- WACC gives the minimum required return of the firm. A True B. False 18- What is the expected return of the three-stock portfolio described below? accum AL Torta 95.000 25.000 30000 10.33% 11.33% 12.33% 12% 19- Assume that for a firm, DE-0.50, A-0.12; 8-0.09, If you would expect to be $2.18, then what would be the price of this stock? A. $35.00 B. $36.41 $39.50 D. cannot be determined from the information given