Which of the following statements is CORRECT?

The value of operations of a stock is the present value of all expected future free cash flows, discounted at the free cash flow growth rate.

The constant growth model is often appropriate for evaluating start-up companies that do not have a stable history of growth but are expected to reach stable growth within the next few years.

If a company has a WACC = 12% and its free cash flow is expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.

The constant growth model cannot be used for a zero growth stock, where free cash flows are expected to remain constant over time.

The free cash flow valuation model for constant growth, Vop = FCF1/(WACC g), can be used to value firms whose free cash flows are expected to grow at a constant rate.