Which of the Following Statements Is FALSE

question 24

Multiple Choice

Which of the following statements is FALSE?

• A)To estimate a firm's enterprise value,we compute the present value of the free cash flows (FCF)that the firm has available to pay equity holders,but not debt holders.
• B)The NPV of any individual project represents its contribution to the firm's enterprise value.
• C)When using the total payout model,we discount total dividends and share repurchases,and use the growth rate in earnings when forecasting the growth of the firm's payout.
• D)In the total payout model,we first value the firm's equity,rather than just a single share.

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Definitions:

Internet

A global network of computers and servers interconnected by communication protocols that enable access to information and communication across vast distances.

Untrusted Network

A network not secured or unknown, where the potential risk for data breaches or cyber-attacks is higher.

Copyright

A form of intellectual property law that protects the rights of creators over their original works, including literature, music, and artwork, from unauthorized use.

Social Engineering

is the art of manipulating people so they give up confidential information, often used in the context of information security.