In theory, the value of a share of common equity is the present value of ____________________________________________________________

1. In theory, the value of a share of common equity is the present value of ____________________________________________________________.

expected future dividends

2. One criticism in using the CAPM to calculate the cost of equity capital is that ______________________________ and the __________________________________________________ are quite sensitive to the time period and methodology used in their computation.

market beta
excess market rate return

3. A company with a market beta of 1 has systemic risk ____________________ to the average amount of systemic risk of all equity securities in the market.

equal