1. How would the expectation of a declining Dollar value versus international currencies affect U.S. auto producers?
A. Bullish
B. Bearish
C. No effect
2. In what circumstances would a dividend discount model make more sense versus a free cash flow model to value a firm?
A. DDM makes sense for newer firms. FCF makes sense for dying firms.
B. DDM makes sense where firms compete inindustries that value plowback more than cash distributions to shareholders.
C. FCF is less useful than DDM, all things equal.
D. DDM makes sense for mature firms. FCF makes sense for newer firms.