Which of the following statements is NOT CORRECT?
A. The free cash flow valuation model discounts free cash flows by the required return on equity.
B. The free cash flow valuation model can be used to find the value of a division.
C. An important step in applying the free cash flow valuation model is forecasting the firm's pro forma financial statements.
D. Free cash flows are assumed to grow at a constant rate beyond a specified date in order to find the horizon, or terminal, value.
E. The free cash flow valuation model can be used both for companies that pay dividends and those that do not pay dividends.
Answer: A
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Which of the following is a legal aspect of promotional communication and subject to guidelines of the FTC?
A) You can use any person's image as long as you don't imply they are endorsing your product. B) Marketing and sales messages are not considered binding contracts. C) Marketing messages aimed at children under the age of 13 are subject to special rules. D) Marketing messages can imply deceptive claims but cannot make an outright statement of the claim if it is untrue. E) Offering a money-back guarantee is considered support for a claim.
The use of robotics in the workplace has increased recently because:
A. Robots are more reliable than people. B. New collaborative machines have been invented. C. The cost of robots has decreased. D. All of these answers are correct.
An account used to record stockholders' investments in a business is called a(n):
A. Dividends account. B. Revenue account. C. Liability account. D. Expense account. E. Common stock account.
The Real Estate Settlement Procedures Act applies to all closings of real property
Indicate whether the statement is true or false