1.Which of the following statements is true about the general dividend valuation model?

a.It implies that the underlying value of a share of stock is determined by the market's expectations of the future dividends that the firm will generate.

b.It implies that the value of a firm's common stock can be determined only if the expected future dividends are unpredictable.

c.It implies that the value of a growth stock can be determined by forecasting the future price of the firm's bonds.

d.The model cannot be used to calculate the value of a common stock unless the dividends exceed the firm'sexpected growth rate.

2. Two projects are considered to be mutually exclusive if

a. selecting one would automatically eliminate accepting the other.

b. they arealsoindependent.

c. they share acommonownership.

d. theyhavesimilar cashflows.