Identify the assumptions that are necessary to make the general dividend valuation model easier to use, and, in doing so, to be able to use the model to calculate the value of a companys ordinary shares. (6 marks)

Explain net present value (NPV) as a capital budgeting tool and how NPV is used for the evaluation of a capital project. (5 marks)

Provide a brief discussion of approximately 250 words detailing the risks inherent in stock returns in a portfolio of shares using the concepts of standard deviation and diversification as a basis for your discussion. (8 marks)

What is an efficient capital market is and why market efficiency is important to financial managers?