true or false (If false explain)

The conservation of value principle states that anything that does not increase cash flows does not increase value. True/false

An effective compensation system of a company should focus on period to period changes in TRS performance rather than TRS relative to peers in the industry. True/false

Random deviation from intrinsic value can occur in stock prices, but managers are best off assuming that the market will correctly reflect the intrinsic value of their decisions. True/false

ROICs tend to be mean reverting, but firms tend to sustain their relative position to the mean (i.e. either higher or lower) for 10 years or more True/false

Average industry revenue growth varies considerably across industries, but the growth rates among companies in the same industry are fairly uniform. True/false

Operating leases represent the most common form of off-balance-sheet debt True/false

In Computing FcF, include investments in capitalized operating leases in gross investment True/false

Since profit is measured over an entire year, whereas capital is measured at only one point in time, it is recommended that return on invested capital (ROIC) use the average of starting and ending invested capital. True/false

To forecast the balance sheet, it is best to first forecast invested capital of financing separately. True/false

The estimate of continuing value after the explicit forecast period cannot be higher than the total value of the firm. True/false

If an observable market value is not readily available book value of debt can be used to calculate capital structure. True/false