All of the following statements are correct except: Select one: a. The equity premium is the additional return in excess of the risk free rate that investors require to purchase a firm'e equity. b. In the absence of debt, Beta is affected by the firm's operating leverage and the cyclicality of the industry. c. Firms with high ratios of fixed to total cost and debt to total capital tend to have lower betas. d. Beta measures the market risk (non- diversifiable risk) by quantifying stock's volatility relative to the overall market. e. Constant growth model is applicable for firms in the mature markets with predictable rate of growth. All of the followings are correct regarding the recent transactions' valuation method, except: Select one: a. valuations based on this method must be adjusted by adding a purchase price premium. b. None of mentioned. c. It is the most accurate method whenever the transaction is truly comparable and very recent. d. There is a difficulty in finding truly comparable recent transactions. e. Also called the precedent transaction method. Market based methods include all of the followings except: Select one: a. Break-up value. b. Recent transactions. c. None of mentioned. d. Comparable companies. e. Same or comparable industries