select all the true statements

Question 1 options:

	Gordon's growth model can be used to value bonds
	You estimate the value of a stock to be $20, but it is currently priced at $50. This stock is a good buy.
	Gordon's growth model assumes that the rate of growth of dividends is larger than the required return
	Gordon's growth model assumes that dividends grow at a constant rate
	Gordon's growth model assumes that dividends remain constant
	You estimate the value of a stock to be $20, but it is currently priced at $50. This stock is NOT a good buy.

Select all the true statements

Question 2 options:

	The dividend discount model can be used to estimate the intrinsic value of dividend paying stocks
	Firms have a contractual obligation to pay dividends
	Stock price is always lower than intrinsic value
	Preemptive rights protect the current stockholders against the dilution of ownership
	Common stock gives the holders the right to elect the members of the board of directors
	Common stock holders have the right to receive coupon payments