Which of the following statements is FALSE?
A) The long-run growth rate gFCF 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 net present value (NPV) that the firm will earn from continuing its existing projects and initiating new ones.
C) If the firm has no debt,then rwacc equals 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.
Correct Answer:
Verified
Q2: Which of the following statements is FALSE?
A)The
Q3: Gonzales Corporation generated free cash flow of
Q4: Use the table for the question(s)below.
Q5: Gonzales Corporation generated free cash flow of
