69.) A financial analyst is least likely to use a free cash flow model to value a firm's equity if:

a. The firm pays no dividends.

b. Growth rates in dividends fall gradually over time.

c. The firm pays a stable dividend that is substantially lower than its earnings.

d. Estimating the value of the firm as a potential takeover candidate.

70.) Which of the following statements is most accurate?

a. Firms with low PB ratios are value firms and tend to outperform high PB firms.

b. The biggest drawback of using PCF ratio is its inability to address operating efficiency.

c. Higher PEG ratios imply undervalued stocks.

d. PCF is a preferred relative measure compared to PE.