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9) The net income that firm earns can either be paid out to shareholders as reinvested in the company as or can be a interest,

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9) The net income that firm earns can either be paid out to shareholders as reinvested in the company as or can be a interest, additional paid-in capital b. dividends, retained earnings c. shares; capital stock. d. capital gains; additional paid-in capital e. interest, retained earnings 10) If the expected rate of return on a stock exceeds the required rate, a The stock is experiencing supernormal growth b. The stock should be sold. The company is probably not trying to maximize price per share. d. The stock is a good buy. e. Dividends are not being declared. 11) All else equal, risk averse investors generally require returns to purchase investments C

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