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.

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Definitions:

Social Inequality

The unequal distribution of wealth, power, or prestige among members of a society.

Social Stratification

A system of classifying individuals and groups based on socioeconomic status, often leading to unequal opportunities and rewards.

Lower-middle Class

Refers to a social group that is between the working class and the middle class, often characterized by moderate income levels, some post-secondary education, and white-collar or skilled blue-collar jobs.

Blue Collar

A description characterizing skilled and semi-skilled workers who perform manual labor or work in service or clerical jobs.