Which of the following statements is not correct? Select one: a. The corporate valuation model...
50.1K
Verified Solution
Link Copied!
Question
Finance
Which of the following statements is not correct?
Select one:
a. The corporate valuation model can be used even for a company that does not pay dividends.
b. The corporate valuation model discounts free cash flows by the required return on equity.
c. The corporate valuation model can be used to find the value of a division.
d. An important step in applying the corporate valuation model is forecasting the pro forma financial statements.
e. Free cash flows must grow at a constant rate in order to find the horizon, or terminal, value.
Which of the following is not always a way to increase the value of a company?
Select one:
a. Increase the growth rate of sales.
b. Increase the operating profitability (NOPAT/Sales).
c. Decrease the capital requirement (Capital/Sales).
d. Decrease the weighted average cost of capital.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.