Which of the following is not considered a basic economic force? Fiscal policy Monetary policy Inflation P/E ratio None of the above (that is, all are basic economic forces) The process of fundamental valuation requires estimates of all the following factors, except The time pattern of returns. The economy's real risk-free rate. The risk premium for the asset. The times series of stock prices. The expected rate of inflation. Fundamentalists typically use the "Bottom-Up Approach" whereas technicians use the Top-Down Approach" to the valuation process. True False The importance of an industry's performance on an individual stock's performance varies across industries. True False Growth companies are those firms that consistently cam higher rates of return by assuming greater amounts of risk. True False The two components that are required in order to carry out asset valuation are the stream of expected cash flows and the required rate of return. True False What is the value of a preferred stock that has a par value of $100, a required rate of return of 11%, and pays a 7 percent annual dividend? XCEL Corporation paid a dividend yesterday for $1.50. They expect to pay dividends annually at a constant 6% annual growth rate indefinitely. If the required rate of return on this investment is 12%, what is the current value of this common stock