State 'true' or 'false', and briefly explain your answer.

1. Valuation only makes sense if the markets are inefficient.

2. We should use long term risk free rates in valuations even if we have a short investment horizon.

3. We should use the official price of a stock to calculate the returns.

4. Other things being equal the beta of a stock with higher operating leverage will be higher.

5. In steady state, the revenue and earnings of a firm can grow at different rates.

6. Valuations using FCFE or Dividends will lead to identical results.