Which of the Following Statements Is False

question 72

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.

---

Definitions:

Attempt Suicide

The act of intentionally trying to end one's own life.

Identical Twins

Twins that are genetically identical, resulting from the splitting of a single fertilized egg.

Adoptive Mom

A woman who has become a parent through the legal process of adoption, establishing a parent-child relationship with a child to whom she is not biologically related.

Biological Mom

A term referring to a woman who has genetically contributed to the creation and birth of a child.