a)

b)

Which of the following statements are correct concerning the growth of a business? None of these As firms get larger, it becomes more and more easy to sustain growth rates in earnings The fundamental growth rate of earnings may be estimated by multiplying (1- the payout ratio) by the return on equity When there are significant barriers to entry and sustainable competitive advantages, firms can sustain high growth for long period of time Which of the following is the correct definition for free cash flows to the firm? EBIT x (1 - Tax Rate) + Depreciation +/- Changes in Working Capital - Capex EBITDA X (1 - Tax Rate) + Depreciation +/- Changes in Working Capital - Capex EBITDA x (1 - Tax Rate) - Depreciation +/- Changes in Working Capital + Capex EBIT x (1 - Tax Rate) - Depreciation +/- Changes in Working Capital + Capex