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:

Ontological Health Model

A conceptual model focusing on the being and existence of individuals in relation to their health and well-being.

Constant Movement

Continuous motion or activity without cessation.

Health

A state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.

Alleviation of Suffering

The act or process of reducing or relieving pain, distress, or hardship in individuals, contributing to improved well-being and comfort.