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.

---

Definitions:

Industrial Economy

An economy characterized by significant industrial activity, often involving manufacturing and the production of goods.

Fine-Tuning

The process of making minor adjustments to monetary and fiscal policy to stabilize the economy, aiming to maintain steady growth and low inflation.

Economic Stability

Economic stability refers to a condition where an economy experiences steady growth, low inflation, and minimal unemployment, thereby reducing uncertainty in economic planning.

Government Policies

A course or principle of action adopted or proposed by a government, political party, or ruling authority.