Projected free cash flows should be compounded at the firm's weighted average cost of capital to find the value of its operations, True False QUESTION 4 According to the no constant growth model discussed in the textbook, the discount rate used to find the present value of the expected cash flows during the initial growth period is the same as the discount rate used to find the PVs of cash flows during the subsequent constant growth period True False QUESTION 5 Risk-averse investors require higher rates of return on investments whose returns are highly uncertain, and most investors are risk averse, True False QUESTION 6 Market risk refers to the tendency of a stock to move with the general stock market. A stock with above average market risk will tend to be more volatile than an average stock, and its beta will be lower than 1.0. O True False