Business, 10.12.2019 03:31, slbutler2005

Which of the following statements is false? a. when using the discounted free cash flow model, we should use a firm's equity cost of capital. b. intuitively, the difference between the discounted free cash flow model and the dividendminusdiscount model is that in the dividedminusdiscount model, a firm's cash and debt are included indirectly through the effect of interest income and expenses on earnings in the dividendminusdiscount model. c. we interpret rwacc as the expected return a firm must pay to investors to compensate them for the risk of holding the firm's debt and equity together. d. a firm's weighted average cost of capital, denoted rwacc, is the cost of capital that reflects the risk of the overall business, which is the combined risk of the firm's equity and debt.

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Which of the following statements is false? a. when using the discounted free cash flow model, we s...