Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)The more cash the firm uses to repurchase shares,the less it has available to pay dividends.
• B)Free cash flow measures the cash generated by the firm after payments to debt or equity holders are considered.
• C)We estimate a firm's current enterprise value by computing the present value (PV)of the firm's free cash flow.
• D)We can interpret the enterprise value as the net cost of acquiring the firm's equity,taking its cash,and paying off all debts.

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Definitions:

Conditioned Reinforcers

Stimuli that acquire their reinforcing power through association with primary reinforcers, playing a role in shaping behavior.

Primary Reinforcers

Basic needs or stimuli such as food, water, or warmth that are naturally rewarding and motivate behavior without learning.

Fixed-interval

A schedule of reinforcement where responses are reinforced after a specified amount of time has passed, used in the study of behavior.

Variable-interval

In operant conditioning, a reinforcement schedule in which a response is rewarded after an unpredictable amount of time has passed.