Which of the following statements about the FCF valuation model are true? Check all that...

60.1K

Verified Solution

Question

Finance

image

Which of the following statements about the FCF valuation model are true? Check all that apply. - A company's FCFs are a function of (1) how quickly the company grows its sales and assets, (2) managers control the firm's costs, and (3) choose to finance the company's activities. The model is useful because it provides its decision- makers with insights into the quality of their decision- making, as measured by the intrinsic value of their company. The FCF valuation model recognizes that a firm's value is a function of its risk-including its use of debt and equity financing and the markets in which it operates. The model can be applied to companies that either pay or do not pay a dividend-but it cannot be applied to privately-held companies

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students