Question 17 Match the following A model that relates the risk retum trade-offs of individual assets to market retums. A security A. Standard Deviation is presumed to receive risk-free rate of return plus a premium for risk 8. Beta C. Supernormal Growth The market value of a firm s assets are less than its liabilities, and the fem has a negative D. Debenture net worth E Capital Structure Theory A value equal to income after taxes plus non cash expenses. F. Weighted Average Cost of Capital A theory that addresses the relative importance of debt and equity in the overall financing of G. Capital Asset Pricing Model the firm H.Cash Flow A measure of volatility of returns on an individual stock relative to the market L Bankruptcy Superior growth of a firm may achieve during its early years, before leveling off to a more normal growth A measure of the spread or dispersion of a series of numbers around the expected value The computed cost of capital determined by multiplying the cost of each item in the optimal capital structure by its weighted representation in the overall capital structure and summing the results