6. (TCO 2) The general dividend valuation model assumes the investor knows the _____ and the discount rate. (Points : 3)

exact dividend to be paid in each and every year current year's dividend, the anticipated annual dividend growth rate, investor's required rate of return book value per share of the company

7. (TCO 2) If an individual stock has a high P/E ratio, this may be misleading _____. (Points : 3)

in an inflationary economy if the firm is in a cyclical industry, like automobiles if the firm has a strong future growth rate More than one of the above

8. (TCO 2) The _____ does not represent continuing operations in any way, but is simply a snapshot of the total worth of a firm at a given point in time. (Points : 3)

income statement balance sheet source and use of funds statement statement of cash flows