Question: Problem 3 (TRUE/FALSE questions). Please answer whether a statement is true or false, and explain your answer (6 points each). 1. Growth and cash flows

Problem 3 (TRUE/FALSE questions). Please answer whether a statement is true or false, and explain your answer (6 points each).

1. Growth and cash flows are generally negatively correlated.

2. The EVA model discounts future EVAs by cost of equity.

3. The dividend discount model, like other discount models, uses discounting to value an enterprise.

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