You are the owner of a chain of salons. Building a new store has an up-front cost of $2M and a discount rate of 12 percent. A new store in the mall will produce perpetual free cash flows of S6M that start next year and grow at annual rate of 2 percent A stand-alone store will produce perpetual free cash flows of $7M that start next year. . You should choose the mall, because it has the higher NPV. True O False QUESTION 2 In a frictionless market, cutting a dividend will lower a firm's share price. True O False QUESTION 3 You are the Finance VP of an alternative fuels company. You expect that if the price of oil continues to fall that your firm will lose valuable contracts. Given your expectations, you should buy a put option on oil barrels. O True False