Calculating the value of a firm requires projections of the firm's income statement and balance sheet in order to estimate the free cash flow. Because of the relation between income statement and balance sheet, it is necessary to do several iterations in order for the statements to tie together. Which of the following results a circular reference relation when modeling the pro-formas in a spreadsheet? 1. The firm finances all of its cash flow deficits with debt and uses all of its excess cash flow to repay debt. 1. The firm issues debt if it runs into a shortfall. If there is excess cash flow, it will retain the cash. M. The firm pays a dividend of $1.5 per share. IV. The firm uses excess cash to buy back 2 million shares. Olonly and only 1...and Odony