Which of the Following Statements Is False

question 87

Multiple Choice

Which of the following statements is false?

• A) To estimate a firm's enterprise value, we compute the present value of the free cash flows (FCF) that the firm has available to pay equity holders.
• B) The NPV of any individual project represents its contribution to the firm's enterprise value.
• C) When using the total payout model, we discount total dividends and share repurchases, and use the growth rate in earnings when forecasting the growth of the firm's payout.
• D) In the total payout model, we first value the firm's equity, rather than just a single share.

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Definitions:

Machine Language

The most basic programming language, consisting of binary code that can be directly executed by a computer's CPU.

Gigabyte

A unit of digital storage amounting to approximately 1 billion bytes or 1024^3 bytes.

GB

Gigabyte, a unit of digital information storage equal to approximately one billion bytes.

Input Devices

Input devices are hardware devices that allow users to interact with a computer, such as keyboards, mice, and scanners.