Which of the Following Statements Is FALSE

question 67

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:

Single Workers

Workers who are not only unmarried but also may represent sole earners in their households or individual contributors in the workforce.

Wage Level

The average rate of pay for workers or employees within a specific area or sector.

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.