[Solved] Which of the Following Statements Is False

Question 47
Multiple Choice

Which of the following statements is FALSE?

A)The project's free cash flow to equity shows the expected amount of additional cash the firm will have available to pay dividends (or conduct share repurchases)each year.
B)The value of the project's FCFE should be identical to the NPV computed using the WACC and APV methods.
C)The value of the project's FCFE represents the gain to shareholders from the project.
D)Because interest payments are deducted before taxes,we adjust the firm's FCF by their before-tax cost.

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