Which of the following statements about the FCF valuation model are true? Check all that apply. The FCF valuation model

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Which of the following statements about the FCF valuation model
are true? Check all that apply.
The FCF valuation model reflects the firm’s riskiness—as it
affects the company’s intrinsic value—via the WACC variable.
The model is useful because it examines the relationship between
a company’s risk, operating profitability, and value of the firm’s
operations.
A company’s FCFs are a function of how efficiently and
effectively the firm’s managers use the company’s operating assets
and, in turn, the profitability of the company’s primary business
activities.
The model can be applied to companies that either pay or do not
pay a dividend—but it cannot be applied to privately-held
companies.
Consider the case of Red Rabbit Builders:
Next year, Red Rabbit is expected to earn an EBIT of
$12,000,000, and to pay a federal-plus-state tax rate of 40%. It
also expects to make $3,000,000 in new capital expenditures to
support this level of business activity, as well as $10,000 in
additional net operating working capital (NOWC).
Given these expectations, it is reasonable to conclude that next
year Red Rabbit will generate an annual free cash flow (FCF)
of (rounded to the nearest whole
dollar).
Next, based on your estimate of Red Rabbit’s next year’s FCF and
making the stated assumptions, complete the following table:
Attributes of Red Rabbit
Value