6. Capitalization and discount rates are always on a: a. Control basis. b. Minority basis. c. Marketable basis. d. Non-marketable basis. 7. The Build-up model of developing a discount rate is most often used when valuing the following types of companies: a. Small public companies. b. Small private companies. c. Large public companies d. Large private companies 8. The following is true concerning capitalization rates: a. They are easily determined b. There is one most generally accepted method to determine capitalization rates c. The capitalization rate must be consistent with the type of income being capitalized d. None of the above 9. Beta is: a. The squared deviation of the actual return of an investment b. The risk premium of the stock market c. A measure of an investment's volatility d. The rate of return on a risky investment 10. Which of the following is a correct statement about the relationship between discount rate and capitalization rate in the context of the income approach to valuation? a. The terms discount rate and capitalization rate are used interchangeably to mean the same thing b. The discount rate equals the capitalization rate less the long-term sustainable growth in the variable being discounted or capitalized c. The capitalization rate equals the discount rate less the long-term sustainable growth in the variable being discounted or capitalized d. None of the above is a correct statement 11. Cost of capital is properly equated to which of the following? a. The discount rate b. The discount rate plus the growth rate c. The capitalization rate d. The capitalization rate less the growth rate