True or False?

1. Scenario analysis determines the degree to which the NPV value reacts to a change in a single variable
2. In most cases the net present value break-even quantity is higher than the accounting profit break-even quantity.
3. The real option to abandon a project adds value.
4. Modigliani and Miller's Proposition I states that the market value of any firm is independent of its capital structure.
5. Financial leverage decreases the expected return and risk of the shareholder.
6. The right to default is valuable to shareholders.
7. According to the trade-off theory, more profitable firms should have more debt and thus higher debt ratios on average.
8. Discounting free cash flows at the WACC assumes that debt is rebalanced every period to maintain a constant ratio of debt to market value of the firm.
9. If expected long-term growth is constant, the firm's horizon value at period H is given by PVH = (FCFH + 1)/(WACC g).