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  Equity valuation models based on dividends, cash flows, and earnings have been the topic of many theoretical and empirical research studies in recent years

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1. Equity valuation models based on dividends, cash flows, and earnings have been the topic of many theoretical and empirical research studies in recent years. All of the following are true regarding evidence from these studies except
2. The theory supporting dividends-based valuation is
3. Under the CAPM, the expected rate of return is based on the following component(s):
4. Under the CAPM, the expected rate of return compensates investors for
5. the dividends-based valuation approach cannot be used for firms that do not pay dividends.
6. Examples of types of risks that are non-diversifiable within the market-wide portfolio of stocks might include
7. Examples of types of risks that are diversifiable within the market-wide portfolio of stocks might include
8. Suppose a firm has a beta of 1.25, the risk-free yield on long-term government securities is 4.0%, and the market-risk premium is 6.0%. The expected return under the CAPM is
9. Suppose for a particular year a firm had comprehensive income of $9,000, a beginning book value of equity of $76,000, and an ending book value of equity of $77,000. Using the clean surplus accounting relation, how much were the firm's dividends that year?
10. Dividends are value-relevant and we can value firms using the present value of expected future dividends. However, a firm's dividend policy (whether and when it pays dividends) can be irrelevant for valuation under a strong assumption. What is that strong assumption?