Which of the following is NOT an underlying assumption of the Dividend Growth Model of stock valuation?

a. Growth is constant

b. Dividends are of the same amount

c. The discount rate exceeds the growth rate

d. Dividends are forever

Both Projects A and B are acceptable as independent projects. However, the selection of either one of these projects eliminates the option of selecting the other project. Which one of the following terms best describes the relationship between Project A and Project B?

a.Multiple choice

b.Mutually exclusive

c.crosswise

d.Dual return

e.Conventional

Which one of the following statements is correct?

a.If the IRR exceeds the required return, the profitability index will be less than 1.0.

b.The profitability index will be greater than 1.0 when the net present value is negative.

c.When the internal rate of return is greater than the required return, the net present value is positive.

d.Projects with standard cash flows have multiple internal rates of return.

e.If two projects are mutually exclusive, you should select the project with the shortest payback period.