2) A spreadsheet model with pro forma income statements and balance sheets is useful for more complex models of the company's total operating and financial environment.

True

False

3) The value of common equity is the present value of expected future dividends plus the present value of the terminal share price of the stock.

True

False

4) company s ability to generate free cash flows and pay dividends in the future can be examined using a spreadsheet model with pro forma income statements and balance

sheets.

True

False