Which of the Following Statements Is FALSE

question 44

Multiple Choice

Which of the following statements is FALSE?

• A)The long-run growth rate gFCF is typically based on the expected long-run growth rate of the firm's revenues.
• B)Because the firm's free cash flow is equal to the sum of the free cash flows from the firm's current and future investments,we can interpret the firm's enterprise value as the total NPV that the firm will earn from continuing its existing projects and initiating new ones.
• C)If the firm has no debt then rwacc = the risk-free rate of return.
• D)When using the discounted free cash flow model,we forecast the firm's free cash flow up to some horizon,together with some terminal (continuation)value of the enterprise.

Interpret financial data from currency exchange listings to make informed business decisions.

Utilize rounding rules appropriately in financial calculations.

Assess the benefits of conducting transactions within foreign trade zones.

Understand the factors contributing to the spread and control of infectious diseases.

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Definitions:

Freddie Mac

A public government-sponsored enterprise aimed at expanding the secondary mortgage market by buying loans from lenders.

Credit Standards

The criteria that lenders use to determine the creditworthiness of potential borrowers.

Sub-prime Loans

Loans offered to individuals with poor credit histories or higher risk of default, often at higher interest rates.

Mortgage Default Rate

The percentage of home mortgages on which the borrower is late by ninety days or more with the payments on the loan or it is in the foreclosure process. This rate is sometimes referred to as the serious delinquency rate.