Question 2 The discounted future dividends is the basis of the most theoretical approaches to stock valuation. True False Moving to another question will save this response Moving to another question will save this response. Question 5 The abnormal return on equity is computed as The return on assets minus the cost of equity The growth in book value The return on equity minus the cost of equity The return of equity plus the weighted average cost of capital Moving to another question will save this response. Question 3 Cost of capital O can be calculated with CAPM is different of the WACC O reflects only equity holders' required rate of return depends on debt