Which of the Following Statements Is FALSE

question 68

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 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 = 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.

---

Definitions:

Chronic Disease

A long-lasting condition that can be controlled but not cured, often with significant impacts on individuals' life, such as diabetes, asthma, and heart disease.

Adjustment

The process of adapting or becoming accustomed to a new situation or environment.

Dynamic

Refers to a process or system characterized by constant change, activity, or progress.

Variable

An element, feature, or factor that is liable to vary or change between individuals or within an individual over time.