Which of the following does not represent a claim on a firm's own value?

a. Debt.

b. Preferred stock.

c. Common equity.

d. Value of non-operating assets.

2. Everything equal, which variable is negatively related to intrinsic value of a company?

a. Weighted average cost of capital.

b. Current free cash flow.

c. Growth rate of free cash flows.

d. Expected future free cash flows.