Which of the Following Statements Is FALSE

question 67

Multiple Choice

Which of the following statements is FALSE?

• A)In a share repurchase,the firm uses excess cash to buy back its own stock.
• B)The discounted free cash flow model begins by determining the value of the firm's equity.
• C)The discounted free cash flow model focuses on the cash flows to all of the firm's investors,both debt and equity holders,and allows us to avoid estimating the impact of the firm's borrowing decisions on earnings.
• D)In recent years,an increasing number of firms have replaced dividend payouts with share repurchases.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for preparing financial statements.

Comparability

An accounting principle that ensures financial statements can be consistently compared across different periods and entities.

Differential Reporting

A principle allowing entities not to adhere strictly to some accounting standards if their specific size or nature makes such standards not relevant.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial reporting.