Q1

Which is an example of a future value annuity due?

A/ CF (1 + k)^2 + CF (1 + k)^1 + CF (1 + k)^0

B/ CF (1 + k)^3 + CF (1 + k)^2 + CF (1 + k)^1

C/ CF (1 + k)^3 + CF (1 + k)^2 + CF (1 + k)^1

D/ CF (1 + k)^2 + CF (1 + k)^1 + CF (1 + k)^0

Q2

If a firm does not have any liabilities, but does have stock that pays dividends, which statement is correct?

A/ FCF = CFA = CFS

B/ CFC = CFS

C/ The debt-to-equity ratio is equal to one

D/ ROA > ROE