In the constant-growth dividend valuation model, the required rate of return on common stock (i.e., cost of equity capital) can be shown to be equal to the sum of the dividend yield plus the ____

If policymakers are expected to increase the money supply, then Monetarists argue that bond demand and thus prices will __________

When it occurs, the actual increase in the money supply will have no further effect on bond prices and thus the anticipated higher inflation rate will cause interest rates to __________. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

If Luxury Spas, Renew Spas, and Relax Spas are all competing in the spa market and Relax Spas consistently is the first to change prices, Relax Spas might be ________.

A) signaling to the other firms to consistently raise their prices B) offering to be the price leader C) signaling to the other firms to consistently lower their prices D) signaling to the other firms to consistently maintain their prices