Which of the Following Statements Is FALSE

question 12

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 net present value (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 equals 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:

College Graduates

Individuals who have completed a college degree program at an accredited institution of higher education.

Job Market

The marketplace in which employers seek employees and employees seek jobs; reflects the dynamics of demand and supply for labor.

High School Dropouts

High School Dropouts refer to individuals who do not complete their secondary education or obtain a high school diploma.

Middle-And Working-Class

Social groups typically defined by their occupational roles, income levels, and educational attainment, often considered the backbone of economic and productive activities in a society.