Q9. Which of the following has no impact on the beta of the firm?

a. The covariance of the stock rates of return and the market rates of return

b. Std deviation of the stock rates of return

c. Std deviation of the market rate of return

d. None of the above (they are all relevant)

Q10. Which of the following has a negative relationship with the fair value of the stock price?

a. Risk

b. Growth

c. Discount rate

d. a and c

e. None of the above

Q11. For computing the FCF (free cash flow for the firm or equity), an increase in the net working capital, holding other variables constant, will

a. increases the FCF

b. Decreases the FCF

c. May increase or decrease FCF

d. increase stock price

e. both a and d