Reference no: EM132771168
Problem 1: Which is a good explanation of the corporate valuation model?
A. It is all of the discounted future free cash flows of the business
B. It is the company's beta risk times risk premium, plus risk-free rate
C. It is the sum of the market values of company debt, equity, etc.
D. It discounts future company dividends at a current dividend growth rate
Problem 2: Project E has an NPV of $94,000. Project F has an NPV of $77,000. If these projects are mutually exclusive, then:
A. Both projects would be accepted.
B. Project E only would be accepted.
C. Project F only would be accepted.
D. Both projects would be rejected.