The underlying assumption of the dividend growth model is that a stock is worth: a. the same amount to every investor regardless of their desired rate of return.
b. the present value of the future income that the stock is expected to generate.
c. an amount computed as the next annual dividend divided by the market rate of return.
d. the same amount as any other stock that pays the same current dividend and has the same required rate of return.
e. an amount computed as the next annual dividend divided by the required rate of return.

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $