6. Which of the following factors were used by Fama and French's three-factor model? ) Excess Return on the market portfolio II) Size Factor III) Book-to-Market Ratio Factor IV) Growth in Industrial Productions V) Change in Unemployment Rate A. B. I, II and III I, II, III, IV and V C. D. I,IV and V IV and V 7. You wish to earn a required rte of return of 12% on each of two stocks, A and B. Each of the stocks paid a dividend of $2 in the current year. The expected growth of dividends is 9% for A and 10% for B. The intrinsic value estimate ofstockA A) B) C) will be greater than the intrinsic value estimate of stockB will be the same as the intrinsic value estimate of stock B will be less than the intrinsic value estimate of stock B Stock ABC pays dividend but has an unstable dividend payout ratio. Its debt to equity ratio is also unstable. Based on this information, which of the following discounted cash flow (DCF) models is appropriate for ABC stock valuation 8. A. Discounted Dividend Model (DDM) B. Discounted Free Cash Flow to Equity Model (FCFE) C. Discounted Free Cash Flow to Firm Model (FCFF) inae ratins in different countries