Ultimately, the value of a firm is determined by:

a.Retained earnings

b.Earnings per share

c.Market investors

d.None of the above

A stock with a beta of 1.5 will:

a.Normally be riskier than the market

b.Increase in value greater than the market

c.Decrease in value less than the market

d.a) and b)

e.all the above

The cost of capital is also equivalent to:

a.The required return

b.The discount rate

c.The opportunity cost

d.The hurdle rate

e.All the above