Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

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

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Definitions:

Hierarchy Of Needs

A theory proposed by Abraham Maslow outlining a five-tier model of human needs, ranging from basic physiological needs to self-actualization.

Dichotomy Corollary

A principle suggesting that psychological phenomena are often best understood by exploring the dualities or dichotomies that exist within them.

Bipolar Constructs

Cognitive structures used in personal construct psychology, consisting of a pair of opposites used to evaluate and understand the world.

Self-Actualization

is the realization or fulfilment of one's talents and potentialities, especially considered as a drive or need present in everyone.