An Analyst Gathers the Following Information for Firm a and Firm

question 11

Multiple Choice

An analyst gathers the following information for Firm A and Firm B.Use the information to compute the industry unlevered beta and the appropriate beta for Firm B to use in the WACC. Firm A: CAPM beta = 1.6;debt-to-equity ratio = 1.2
Firm B: CAPM beta = 1.0;debt-to-equity ratio = 0.8
The appropriate beta for Firm B is closest to:

• A)1.026
• B)1.154
• C)1.170
• D)1.163

Analyze the components and implications of the cognitive-affective personality system (CAPS).

Distinguish between reliability and validity in the context of psychological assessment.

Understand the role of self-esteem and neural activation in self-perception processes.

Identify the limitations and advantages of interviews in psychological assessment.

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Definitions:

Bonds

Financial securities that represent a loan made by an investor to a borrower, typically corporate or governmental.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation and a claim on part of the company’s profits.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders in the form of cash.

Operating Activities

Activities that relate directly to the primary business operations, including revenues and expenses, cash flows, and transactions.