a.) The intrinsic price of a share of common stock is equal to the ___________ ___________ of all future dividends.

A. present value

B. preferred stock

C. future value

D. required return

b.) The use of the _________ approach to common stock valuation is superior to other methods since it explicitly accounts for the firms expected

A. liquidation value

B. book value

C. present value of future earnings

D. P/E multiple

c.)

The use of fixed-cost debt financing to magnify risk and return is called:

A. activity leverage

B. operating leverage

C. insolvency leverage

D. financial leverage