Assess the likelihood that the following firms will be taken over, based on your understanding of the

Question:

Assess the likelihood that the following firms will be taken over, based on your understanding of the hypothesis. You can assume that earnings and free cash flows are highly correlated.
a. A firm with high-growth prospects, good projects, low leverage, and high earnings.
b. A firm with low-growth prospects, poor projects, low leverage, and poor earnings.
c. A firm with high-growth prospects, good projects, high leverage, and low earnings.
d. A firm with low-growth prospects, poor projects, high leverage, and good earnings.
e. A firm with low-growth prospects, poor projects, low leverage, and good earnings.
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...