1. The constant dividend growth model:
A. is more complex than the differential growth model.
B. requires the growth period be limited to a set number of years.
C. is never used because firms rarely attempt to maintain steady dividend growth.
D. can be used to compute a stock price at any point in time.
E. most applies to stocks with differential growth rates.
2. Enterprise value equals the:
A. combined market value of debt and equity minus excess cash.
B. market value of equity minus the market value of debt plus excess cash.
C. market value of debt plus the book value of equity minus excess cash.
D. combined market value of debt and equity.
E. combined book value of debt and equity minus excess cash.