1.The forward exchange rate adjustment to a spot exchange rate is based on:

a.The time value of money.

b.The discount rate.

c.The interest rate differential between the country's term structure of interest rates.

d.The Federal Reserve.

2.When calculating the intrinsic value of a stock price, all of the following are short comings to the Constant Dividend Discount Model except:

a.The company must issue both stocks and bonds.

b.The required rate of return must be greater than the expected dividend growth rate.

c.The dividend must grow at a constant (same) rate over time.

d.Small changes to inputs can have a large impact to results.