Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)The more cash the firm uses to repurchase shares,the less it has available to pay dividends.
• B)Free cash flow measures the cash generated by the firm after payments to debt or equity holders are considered.
• C)We estimate a firm's current enterprise value by computing the present value of the firm's free cash flow.
• D)We can interpret the enterprise value as the net cost of acquiring the firm's equity,taking its cash and paying off all debts.

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Definitions:

Congenital Condition

A condition or disease present from birth, either inherited or caused by environmental factors.

Male Characteristics

Traits or features, both biological and physiological, traditionally associated with male organisms.

Hormones

Chemical messengers produced by glands that regulate physiological and behavioral actions in the body.

Eye Protrusion

the abnormal bulging or forward displacement of one or both eyes, often indicative of a medical condition.