Week 1 1. Why does the value of a share of stock depend on dividends? What are the assumptions for the three dividend growth models you've learned? Briefly comment on the reasonableness of these assumptions. (Hint: Ch.8) 2. NPV: Describe how NPV is calculated and its decision rule? Why is NPV considered to be a superior method of evaluating a project? (Hint:Ch.9) Week 2 1. What is the stand-alone principal in capital budgeting? (Hint: Ch.10) 2. Explain in details how to determine the incremental cash flows in a project. (Hint: Ch 10: initial outlay, Annual OCF, terminal CF, and concepts such as sunk costs, opportunity costs, various side effects, changes NWC and after-tax net salvage value)