If the Capital Structure Is Stable, and Free Cash Flows

question 19

True/False

If the capital structure is stable, and free cash flows are expected to be growing at a constant rate at the horizon date, then the horizon value is calculated by discounting the free cash flows plus the expected future tax shields at the weighted average cost of capital.

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Definitions:

Trans-Acting

Referring to genetic regulatory elements or factors, such as transcription factors, that can regulate the expression of genes located elsewhere on the DNA molecule.

Regulatory Elements

Genetic sequences that control the activity of genes, including promoters, enhancers, silencers, and insulators that can regulate gene expression.

Transcription Factors

Proteins that bind to specific DNA sequences, controlling the transfer of genetic information from DNA to mRNA.

Somatic Mutation

A somatic mutation is a mutation that affects cells in the body (“soma”) of an organism. These mutations affect all the daughter cells produced by the affected cell and can affect the phenotype of the individual. In animals, somatic mutations are not passed down to offspring. In plants, somatic mutations can be passed down during vegetative reproduction.