Which of the Following Statements Is FALSE

question 67

Multiple Choice

Which of the following statements is FALSE?

• A)In a share repurchase,the firm uses excess cash to buy back its own stock.
• B)The discounted free cash flow model begins by determining the value of the firm's equity.
• C)The discounted free cash flow model focuses on the cash flows to all of the firm's investors,both debt and equity holders,and allows us to avoid estimating the impact of the firm's borrowing decisions on earnings.
• D)In recent years,an increasing number of firms have replaced dividend payouts with share repurchases.

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Definitions:

Independent Random Samples

Samples selected from the same population where the selection of one element does not influence or affect the selection of any other element.

Rejection Regions

The portion of a sampling distribution that, if a test statistic falls within, leads to the rejection of the null hypothesis.

Testing Conditions

The specific circumstances or requirements under which a test or experiment is conducted.

Assumptions of Normality

The prerequisite that a dataset should be normally distributed for certain statistical tests to be applicable.