a)

b)

Assuming a company has no other funding sources other than debt and common equity, what is the difference between enterprise value and equity value? Long term debt All interest bearing debt less cash and equivalents All interest bearing debt Cash Which of the following statements are correct regarding DDM: A higher dividend automatically makes the value of the stock higher. The DDM undervalues stocks when the company pays a low dividend. The DDM can be used to value a high growth company that pays dividend. None of these