10. Which of the following statements is NOT correct? A. The corporate valuation model can be used to find the value of a division. B. The corporate valuation model discounts free cash flows by the required return on C. An i equity mportant step in applying the corporate valuation model is forecasting the firm's pro forma financial statements. D. Free cash flows are assumed to grow find the horizon, or terminal, value. at a constant rate beyond a specified date in order to coporate valuation model can be used both for companies that pay dividends and those that do not pay dividends. ni h Which of the following is NOT associated with (or does not contribute to) business risk? Recall that business risk is affected by a firm's operations. A. Sales price variability B. The extent to which operating costs are fixed. C. The extent to which interest rates on the firm's debt fluctuate. D. Input price variability E. Demand variability 12. The net present value: A. decreases as the required rate of return increases is equal to the initial investment when the internal rate of return is equal to the required return. C. method of analysis cannot be applied to mutually exclusive projects E. is unaffected by the timing of an investment's cash flows D. increases as the required rate of return increases. 13. Any changes to a firm's projected future cash flows that are caused by adding a new project are referred to as which one of the following? A. Eroded cash flows B. Deviated projections C. Incremental cash flows D. Directly impacted flows E. Assumed flows 14. Which of the following is the date when the right to the dividend leaves the stock? A. Declaration date B. Dividend date C Holder-ofrecord date D. Payment date . Ex-dividend date