When both project A and project B have positive net present values but capital is limited, we should? Choose the project with higher internal rate of return. Choose the project with higher net present value Choose the project with lower profitability index. Choose either one because they are indifferent. The dividend discount model cannot be used when Dividend payout ratio is zero. Dividends do not grow. Dividends grow at constant rate. Dividends grow at varying rates before phasing out to a constant rate. The expected return on a common stock is composed of: dividend yield. capital appreciation. both current yield and capital appreciation. both capital appreciation and dividend yield