Which of the Following Statements Is FALSE

question 21

Multiple Choice

Which of the following statements is FALSE?

• A)The firm's weighted average cost of capital (WACC)denoted r_wacc is the cost of capital that reflects the risk of the overall business,which is the combined risk of the firm's equity and debt.
• B)Intuitively,the difference between the discounted free cash flow model and the dividend-discount model is that in the divided-discount model the firm's cash and debt are included indirectly through the effect of interest income and expenses on earnings in the dividend-discount model.
• C)We interpret r_wacc as the expected return the firm must pay to investors to compensate them for the risk of holding the firm's debt and equity together.
• D)When using the discounted free cash flow model we should use the firm's equity cost of capital.

---

Definitions:

Synthetic Chemical Reactions

Chemically engineered processes to form new substances from one or more reactants, involving the breaking and forming of bonds.

Enzymes

Biological molecules that act as catalysts to speed up chemical reactions in living organisms.

Green Chemistry

The design of chemical processes and products that reduce or eliminate the use and generation of hazardous substances, promoting sustainability.

Enzymes

Enzymes are biological catalysts that speed up chemical reactions in living organisms by lowering the activation energy, thereby playing essential roles in metabolic processes.