Which of the Following Statements Is FALSE

question 68

Multiple Choice

Which of the following statements is FALSE?

• A)The long-run growth rate g_FCF 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 r_wacc = 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.

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Definitions:

Sample Size

The number of observations or datapoints that are used in a statistical sample.

Finite Population Correction Factor

A factor applied in sampling calculations to adjust for the size of the population when the sample size is a substantial fraction of the total population, to improve the estimation accuracy.

Margin of Error

An indicator of the confidence in the results of a survey or experiment, expressing the amount of potential error in the measurements.

Sample Size

The number of observations or data points collected in a study or experiment.