1. Determine the expected return of a company's stock given a risk free rate of 7%, an 9) expected market return of 12%, a market risk premium of 5% and a company Beta of 1.5.

A) 0.135 B) 0.145 C) 0.125 D) 0.115

2. In order to value an equity security, an analyst has collected information regarding cash flows available to be distributed to shareholders, capital expenditures of the company and working capital needs. The category of equity valuation model the analyst is going to apply is:

A) Present Value

B) Multiplier

C) Asset-Based Valuation