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QUESTION 21 Which of the following statements about the discounted dividend valuation model (DDM) is NOT true? O 1.It cannot be used to value private firms O 2. It cannot be applied to firms that never make a dividend payment 3.It cannot be applied to firms with negative earnings (loss making firms) 4. It can be applied to firms with any pattern of forecasted dividends, not just those with constantly growing dividends QUESTION 22 Which of the following is an example of a conflict that can arise between shareholders and creditors? O Downplaying negative information and promoting positive news when the firm is preparing to issue new common shares. O 2. The undertaking of highly risky projects. O 3. The passing up of profitable projects because they are viewed as too risky? O 4. Taking steps to legally both defer and minimize taxes payable