Constant growth model assumes Multiple Choice P/E ratio is constant Dividend growth is constant Dividend yield is constant A firm's sale growth is constant High inflation rate leads to lower real return on stocks if nominal return does not change over time. True or False True False In using IRR to select projects, the project will not be acceptable if IRR is greater than required rate of return; True or False True False Which of the following is correct about payback period? Multiple Choice payback period gives the amount of time when the project NPV is zero payback period does not consider time value of money payback period helps select positive NPV project payback period gives the amount of time when the project NPV turns positive You own a land and is considering two projects: Project A: build a gas station on top Project B: build a hotel on top This is an example of two independent projects True or False True False