10. Which of the following are potential problems with valuing firms using the comparable approach and the PE ratio to value the equity of a firm: a. Using past earnings to calculate the PE ratio of the comparable firms b. When buying a share of stock, we are buying more than one year's worth of earnings, so PE may not be appropriate c. Finding comparable firms can be challenging or impossible d. All of the above 11. If forecasted sales exceed the accounting break-even level but are less than the economic break-even level, the project has a: a. positive NPV b. net loss on the income statement c. net profit on the income statement d. cash flow less than the depreciation 12. For ALL potential projects, if the required return were to suddenly increase, then the NPV a. definitely increase b. definitely decrease c. maybe increase, maybe decrease d. remains the same