a)

b)

please elaborate why the answer is the answer. please help a sis out. thank you in advance!

You are evaluating the common stock issued by General Motors. You find the ROE is 25% with a dividend payout rate of 20%, leading to an internal growth rate of 20%. You require a rate of 8% on General Motors' stock. General Motors is not in a constant growth phase. Use the constant growth in dividend method to find the value of the stock. A zero growth in dividend model is probably a better estimate of the value of the common stock. O Do not buy this stock, it is worth a negative amount. General Motors appears not to be earning money for its stockholders. When companies are evaluating more than one project but can only choose one (Mutually exclusive projects) Choose the project with the highest Net Present Value Always choose the highest IRR project Any method to choose which project to invest in is fine. All methods will lead to the same conclusion Take the project with the highest profitability index The highest payback period is best since it tells how fast the money will be repaid