Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)We can interpret the enterprise value as the net cost of acquiring the firm's equity, taking its cash, and paying off all debts.
• 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)The more cash the firm uses to repurchase shares, the less it has available to pay dividends.

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Definitions:

Shaping

A behavioral psychology technique of progressively reinforcing behaviors that approximate or lead towards a desired goal behavior.

Conditioned Reinforcement

A process where a stimulus gains the capacity to reinforce desirable behaviors through its association with a primary reinforcer.

Reinforcement

A psychological principle that involves using consequences to strengthen a behavior, making it more likely to occur in the future.

Classical Conditioning

An instructive method involving the repeated pairing of two stimuli; a response, initially elicited by the second stimulus, is in time elicited by the first stimulus independently.