The CAPM calculation gives us the maximum required rate of return on a stock.

Short concept: The three questions will be repeated in the next set.  Pick any two out of the three from the choices below.  If you attempt all, I will grade only the first two.  Use this space to answer 1 of your 2 choices. 1. What is total risk and what are the two components of total risk?  How can this risk be reduced?  When calculating the risk for a 2 or 3 stock portfolio, what are the statistical components you should take into account and why? OR 2.  When calculating the value of a firm for an acquisition of a target firm, what factors would you consider when determining the discount rate for calculating this value? If there are gains of synergy associated with this acquisition, how will the acquiring firm account for this in their valuation of the target? OR 3.  Your firm is considering cutting dividends due to a recent downturn in your industry.  With the knowledge gained from your recent Corporate Finance class, how would you present the pros and cons to changing dividend policy to your management team/and or shareholders?     

All veterinarians who prescribe controlled substances must have a license from which of the following?

Which of the following is an example of an NA having a professional relationship with an employer?

The decision to issue debt rather than additional shares of stock is an example of: 

Which is true of advance directives?

Saban Enterprises’ beta is 1.50 and its dividend growth rate is 11.35%, and just yesterday, it paid a dividend of $1.45.  The stock price today is $55.00.  Today’s stock price equals today’s intrinsic value and it is assumed that the stock price moves in accordance with the dividend discount constant growth model.  The risk free rate is 3.25% and the expected risk premium for the market portfolio is 10.65%.  You believe that the stock represents a good investment if the expected total return implied by the dividend constant growth model exceeds the required rate of return implied by the Capital Asset Pricing Model.  What is the required rate of return and expected rate of return for the stock?  Should you buy it; why or why not?  Should show all work .

If an investor desires less risk than the market, she can buy

A client who is contemplating buying a cat from a neighbor, who also happens to be a client of the practice, calls to ask if the practice will provide a copy of the medical records for the cat. Which of the following is the most appropriate response?

The NA’s responsibilities regarding postmortem care include