true or false?

1,In the context of DCF, a company maintaining a capital structure policy of zero debt will have a levered equity beta equal to its unlevered equity beta. (All all other inputs remain unchanged.)

2,If the corporate income tax rate were to drop to 0% then the use of debt will become more desirable in terms of increasing net income and ROE.

3,Not every company with growing earnings and dividends will be worth even more if management were to reinvest a larger fraction of the company's earnings.

Group of answer choices

4,In DCF valuation, capitalizing research and development (R&D) expenditures can lead to a material change in the company's re-stated ROE.

5,In the context of CAPM, a risky asset with positive beta (beta>0) will have a positive expected excess return. (Assuming investors are risk-averse.)

6,The modified dividend payout ratio will, typically, exceed the conventional dividend payout ratio. (Assuming the company buys back some shares.)

7,In the context of DDM, a dividend payout ratio equal to 100% implies that the future growth rate of earnings per share (EPS) will be equal to 100%.