a. The constant-growth dividend discount model (DDM) can be used only when the ___________.
A) growth rate is less than or equal to the required return
B) growth rate is greater than or equal to the required return C) growth rate is less than the required return
D) growth rate is greater than the required return
b. Which of the following assets is most liquid?
A) Cash equivalents
B) Receivables
C) Inventories
D) Plant and equipment
c. You are considering purchasing a put option on a stock with a current price of $33. The exercise price is $35, and the price of the corresponding call option is $2.25. According to the put-call parity theorem, if the risk-free rate of interest is 4% and there are 90 days until expiration, the value of the put should be ____________.