1. According to the constant growth model for firms that pay dividends, the dividend yield equals:
a. the required rate of return
b. the required rate of return plus the dividend growth rate
c. the required rate of return minus the dividend growth rate
d. dividend growth rate
2. The purpose of multiple classes of stock is primarily to:
a. allow common stock to have cumulative privilidges
b. all certain shareholders to retain control of the firm
c. ensure all shareholders have equal rights
d. eliminate preemptive rights