Discuss the following statements: Which of them are right and which are wrong? Explain your answer.

a.The Dividend Discount Model is a poor valuation model that in most cases produces wrong equity values.

b.The Free Cash Flow to Equity Model cannot be applied to companies that currently do not pay any dividends.

c.If firm A and firm B have the same size and identical returns on common equity (ROCE), these two firms will have the same price-to-earnings ratio as well.

d.During the last decade, the extent of fair value accounting has increased throughout the world. More fair value accounting decreases expected residual earnings.