Present Value of the Free Cash Flows Discounted at the Unlevered

question 38

True/False

present value of the free cash flows discounted at the unlevered cost of equity is the value of the firm's operations if it had no debt.

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Definitions:

True Inequality

A statement of inequality that is valid for the values it involves.

Real Number Line

A line that graphically represents all possible real numbers, both positive and negative, including integers and fractions.

Ascending Order

Arranging numbers or other elements in a sequence from the smallest to the largest value.

Approximate

To approximate means to find a value close to the exact answer, often through estimation or rounding.