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The term random walk is used in investments to refer to __________.

One type of passive portfolio management is __________.

OPL Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 12%. The stock of OPL Corporation has a beta of 0.75. Using the constant-growth DDM, the intrinsic value of the stock is __________.

Beta is a measure of __________.

Using the Gordon Growth Model and the provided data, what is the estimated value of Sonoco Products Company (SON) stock? • Recent annual dividend (D0 ): $1.24 • Expected dividend growth rate (g): 4.0% • Beta (β): 0.95 • Equity risk premium: 4.5% • Risk-free rate (Rf): 3.0%

This is a FOUR-PART question: 1. DEFINE debt ratio (for 2 points) 2. STATE the equation to calculate the debt ratio (for 2 points) 3. EXPLAIN briefly what the bad debt ratio is used for (for 2 points) 4. STATE the equation to calculate the bad debt ratio (for 2 points)

Kansas City Southern Preferred 20% (NYSE: KSU-P), issued 2 January 1996, has a par value of $25 per share. Thus, a share pays 0.20($25) = $5.00 in annual dividends. The required rate of return on this security is estimated at 5%. Estimate the value of this issue.

The EBIT of a firm is $300, the tax rate is 35%, the depreciation is $20, capital expenditures are $65, and the increase in net working capital is $20. What is the free cash flow to the firm?

If the put/call ratio increases, this signal may interpreted as?

When starting a new business, an entrepreneur must decide what combination of _____________ or ______________ to use to finance the business.