Do you think that fiscal policy or monetary policy has more


1. Do you think that fiscal policy or monetary policy has more potential for influence in today’s market environment? Why?

2. What is the relationship between the Dividend Discount Model and the P/E ratio? What are the assumptions of the Dividend Discount Model?

3. Explain why we should care about incremental cash flows at the firm level when we evaluate a project. Provide an example.

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Financial Management: Do you think that fiscal policy or monetary policy has more
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