In Comparing the Constant Growth Model and the Capital Asset

question 3

Multiple Choice

In comparing the constant growth model and the capital asset pricing model (CAPM) to calculate the cost of common stock equity,

• A) the constant growth model ignores risk, while the CAPM directly considers risk as reflected in the beta.
• B) the CAPM directly considers risk as reflected in the beta, while the constant growth model uses the market price as a reflection of the expected risk-return preference of investors.
• C) the CAPM directly considers risk as reflected in the beta, while the constant growth model uses dividend expectations as a reflection of risk.
• D) the CAPM indirectly considers risk as reflected in the market return, while the constant growth model uses dividend expectations as a reflection of risk.

Explain the sociological significance of moral entrepreneurs and their impact on societal norms and laws.

Understand the processes through which unsubstantiated stories (rumours) evolve and influence public perception and behaviour.

Understand the risk and safety profiles of benzodiazepines and barbiturates.

Identify the side effects and potential adverse reactions of benzodiazepines.

---

Definitions:

Bankrupt Discharged

Refers to the legal status whereby an individual or entity, previously declared bankrupt, has been officially released from most, if not all, debt obligations by a court.

Creditor

An entity or person to whom money is owed by a debtor.

Bankruptcy and Insolvency

Legal statuses of an individual or entity that cannot repay the debts they owe to creditors.

Bankruptcy Offence

A criminal act under bankruptcy law, such as fraud or misrepresentation, during the bankruptcy process.