Question: true or false ? Statement 1:since IAMG financial statements are prepared based on IFRS, then we need not to add interest expense to CFO when

true or false ?

Statement 1:since IAMG financial statements are prepared based on IFRS, then we need not to add interest expense to CFO when we calculate the FCFF starting from CFO.

Statement 2:an analyst calculates the FCFF as cash flow from operations minus investment in fixed capital, then he proceeds to calculate FCFE, and he calculates it as FCFF (from theprevious step) plus net borrowing. If he does so, then he overstated both FCFF and FCFE.

Statement 3:the three assumptions that are implied in calculating the forward-looking market risk premium is that market is efficient (prices are at equilibrium), the growth rate in dividend is constant over time, and there are no stock repurchases. The same assumptions are implied in calculating the implied cost of equity on the firm level.

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