Which of the following is equity? 1. investments 2. additional paid-in capital 3. retained earnings a) 1 and 2 b) 1 and 3 c) 2 and 3 d) 1, 2, and 3 The value of a common stock depends in part on the expected growth in dividends. a) True b) False The value of a stock should increase if investors' required rate of return declines. a) True b) False