1. The advantage of the dividend discount model is that:

A)	Capital gains can be earned instead of dividends
B)	It is simple
C)	Firms publish their dividend policies
D)	Dividends are easily observable
E)	All of the above

2. Which of the following descriptions of the free cash flow to the firm (FCFF) model is inaccurate?
	A)	With the FCFF valuation model, firm value is the sum of the present value of horizon and terminal period free cash flows.
	B)	FCFF is defined as NOPAT less the decrease in NOA during the period.
	C)	Managers can increase FCFF in the short run by decreasing fixed-asset acquisitions.
	D)	FCFF analysis focuses on the amount by which shareholder value is created during a period.
	E)	None of the above

3. Actuarial gains and losses arise from:
	A)	Changes in estimates of wage inflation
	B)	Changes in discount rate
	C)	Changes in mortality rates
	D)	A and C only
	E)	All of the above