A student is conducting an evaluation for an Australian company with the following statements. Answer whether it is TRUE or FALSE for each statement and specify the reasons.

1. He finds that the buyers have high switching costs and thus specifies the buyer power is high for the company.
2. He has calculated a very low cash conversion cycle (CCC) and believes that the company has a high operating efficiency.
3. To get the discount rate, he conducts regression analysis to obtain the regression beta (0.75), using the S&P 500 as the market index.
4. To forecast the growth rate of FCFE, he applies a high growth rate, which is the geometric growth rate of revenues using all available historical data.
5. In the intrinsic valuation, he calculates FCFE using the reported net income from last year and deducts the net working capital as well as net capital expenditure from the net income, without adjusting for R&D and acquisition costs.