5.Market equity beta measures the covariability of a firm's returns with the returns of:

a. all securities in the market.

b. all industry competitors in the market.

c. all firms of comparable market value.

d. risk free securities.

6.Another term for earnings power is:

a. sustainable earnings.

b. net change in equity.

c. nonrecurrent gains.

d. nonrecurrent revenue.

7.As a firm progresses through the growth life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?

a. dividends

b. stock buy-backs

c. issued debt

d. paying down of debt

8.The two most popular discounted earnings models appear to be:

a. price-cash flow and dividend discount.

b. sales/market capitalization and price-earnings.

c. free cash flow and dividend discount model.

d. discounted abnormal earnings and residual income.