Which of the Following Statements Is FALSE

question 44

Multiple Choice

Which of the following statements is FALSE?

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

---

Definitions:

BPM

Business Process Management, a systematic approach to improving an organization's processes and workflows for greater efficiency, effectiveness, and adaptability.

BPR

Business Process Reengineering, a management strategy focusing on the analysis and redesign of workflows and processes within an organization to improve performance.

Six Sigma

A set of techniques and tools for process improvement aimed at reducing defects and improving quality in manufacturing and business processes.

BPI

Business Process Improvement entails evaluating, analyzing, and enhancing business processes to optimize performance and meet best practice standards.