Which of the Following Statements Is FALSE

question 27

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 a firm's revenues.
• B) Since a 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 net present value (NPV) that the firm will earn from continuing its existing projects and initiating new ones.
• C) If a firm has no debt, then r_wacc equals the risk-free rate of return.
• D) When using the discounted free cash flow model, we forecast a firm's free cash flow up to some horizon, together with some terminal (continuation) value of the enterprise.

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Definitions:

Motor Skills

Abilities required to perform coordinated movements, ranging from simple to complex actions.

Culture-Free

A concept suggesting the possibility of creating tests, assessments, or interventions that are not influenced by cultural biases or specificities.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Convergent Thinking

A thought process that attempts to focus on the single best solution to a problem.