1. The constant growth rate model assumes that:
A. dividends will be paid in perpetuity.
B. dividends will be paid for a stated number of years.
C. the dividend payout ratio increases at a constant rate.
D. the dividend payout ratio will remain constant.
E. the dividend growth rate is equal to the discount rate.
2. The conventional policy tools available to the federal include each of the following excepts the:
a) currency-to-deposit ratio.
b) discount rate
c) reserve requirment
d) target federal funds rate range