Which of the Following Statements Is FALSE

question 80

Multiple Choice

Which of the following statements is FALSE?

• A)To estimate a firm's enterprise value,we compute the present value of the free cash flows (FCF)that the firm has available to pay equity holders.
• B)The NPV of any individual project represents its contribution to the firm's enterprise value.
• C)When using the total payout model,we discount total dividends and share repurchases,and use the growth rate in earnings when forecasting the growth of the firm's payout.
• D)In the total payout model,we first value the firm's equity,rather than just a single share.

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Definitions:

Total Ordering

A mathematical concept referring to a complete arrangement or sequencing of elements according to a specific order, without any pair of elements being incomparable.

Inheritance

A fundamental concept in object-oriented programming where a class (subclass) can inherit fields and methods from another class (superclass), promoting code reuse.

Base Class

A class from which other classes are derived, containing methods and properties that can be inherited or overridden.

Inner Classes

Classes declared within another class's body, allowing for closer association with the enclosing class.