1. Empirical research finds which of the following factors is positively correlated with the liquidity discount of the restricted stocks?
a. Issuer size
b. Issuer profitability
c. Issuer’s cash holding level
d. The restricted stocks’ vesting period (the time period when you cannot trade the stock)
2. If we are using a DFC valuation (discounted cash flow), the value of an asset is the sum of the--------------------- of expected future cash flows of the asset (only choose one)
a) terminal value
b) future value
c) sum
d) present value