Which of the Following Statements Is False

question 16

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:

Subpopulations

Distinct groups within a larger population that may differ genetically and/or behaviorally, often due to geographical, ecological, or social barriers.

Molecular Clock

A technique in molecular evolution that uses mutation rates of biomolecules to deduce the time in prehistory when two or more life forms diverged.

Base Pair Substitutions

Mutations that occur when one nucleotide base pair is replaced by another pair, which can lead to changes in the protein produced.

Phylogeny

The evolutionary history and relationships among individuals or groups of organisms, illustrating how species have diverged and evolved from common ancestors.