The EV/EBITDA ratio has an advantage over the PE ratio in situations where comparisons are being made of firms that vary based on their:

A.	method of depreciation.

B.	rate of growth.

C.	degree of leverage.

D.	level of cash.

E.	sales level.

6.

The free cash flow model, as compared to other models, tends to be most helpful when valuing a share of stock in:

A.	a firm that pays dividends that increase at a constant rate of growth.

B.	various firms having similar growth opportunities.

C.	a non-dividend paying firm that has external financing needs.

D.	a firm that plans to lower its dividend growth rate in the future.

E.	a firm that pays a fixed annual dividend.