QUESTION 21 21. Which of the following would most appropriately be valued using an asset-based model? a. An energy exploration firm in financial distress that owns drilling rights for offshore areas, b. A paper firm located in a country that is experiencing high inflation. C. software firm that invests heavily in research and development and frequently introduces new products. QUESTION 22 22. When a firm does not pay dividends: a. Valuation using free cash flow to equity is preferred. b. Dividends should be estimated using the sustainable growth rate. c. The firm cannot be valued