What do the dividend discount model and the free cash flow to equity model imply?

A. the lower future cash flows to shares are, the higher the value of the shares

B. the value of equity shares reflect the discounted value of future cash flows to which shareholders are entitled

C. equity shares are less risky than debt offerings because they represent residual claims

D. future cash flows that equity holders are entitled to should be discounted to the present using the coupon rate that the firm pays on new debt issues

E. equity shares should not trade on exchanges because we can find their values without needing them to trade

Municipal bonds that are backed by the income generated by the project they finance are

A. default-free bonds

B. revenue bonds

C. TIPS

D. taxable bonds

E. general obligation bonds