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:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (or return) of an investment by the cost of the investment.

Training

The process of enhancing the skills, capabilities, and knowledge of employees for performing specific jobs.

ROI Calculation

A financial metric used to evaluate the efficiency and profitability of an investment, calculated as the return on investment divided by the cost of the investment.

Financial Benefits

Economic advantages or gains, such as increased income, cost savings, or improved financial performance.