Consider the following statements relating to the dividend discount model.

I. The dividend discount model cannot be used to value a company that has not paid dividends in the past, regardless of whether the firm may pay dividends in the future. Otherwise, one obtains a value equal to zero

II. One obtains a lower value of equity when using the dividend discount model instead of the FCFE approach. Thus, the dividend discount model is, for any given firm, more conservative than the FCFE approach

III. The dividend discount model is preferable to the FCFE approach when the company is accumulating large cash balances

Below, TTT means that I., II., III. are true, TTF means that I., II. are true but III. is false, and so on.

1. TTT
2. TTF
3. TFT
4. FTT
5. FFF