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.

---

Definitions:

Maturation

The process of becoming mature or fully developed, either biologically, mentally, or emotionally.

Sexual Reproduction

A biological process where organisms create offspring by combining genetic material from two different sexes.

Parthenogenesis

A form of asexual reproduction that involves development of an embryo from an unfertilized egg cell.

Fertilization

The fusion of male and female gametes, resulting in the formation of a zygote that can develop into a new organism.