Which of the following statements is correct?

Select one:

a.The enterprise value of a firm is affected by all present and past cash flows of the firm.

b.When calculating the Free Cash Flow (FCF) of a firm, you can ignore Capital Expenditure, because it does not affects earnings.

c.One difference between common stock and bond is that the bond holders are the owners of the firm.

d.The dividend yield is defined as the expected dividend at t = 1 divided by the current stock price while capital gain is the return from a change in the stock price between t=0 and t=1.