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:

Highest Occupied

Pertaining to the highest energy level that contains electrons in an atom or molecule under ground state conditions.

Molecular Orbital

A region in a molecule where electrons are most likely to be found, representing the quantum mechanical behavior of electrons in molecules.

Conjugated Pi System

A molecular structure where alternating single and double bonds allow electrons to be more delocalized and contribute to the molecule's stability.

LUMO

The Lowest Unoccupied Molecular Orbital is the orbital with the lowest energy level capable of accepting an electron.