1.)

Which of the following statements is false? The long-run growth rate gFCF is typically based on the expected long-run growth rate OA. of the rm's revenues. Because the rm's free cash ow is equal to the sum of the free cash flows from the firm's current and future investments, we can interpret the rm's enterprise value as A B_the total NPV that the rm will earn from continuing its existing projects and initiating new ones. a If the firm has no debt then rwacc = the risk-free rate of return. When using the discounted free cash flow model, we forecast the rm's free cash flow A D up to some horizon, together with some terminal (continuation) value of the 'enterprise. Which of the following statements is false? If a bond trades at a premium, its yield to maturity will exceed its coupon rate. A bond that trades at a premium is said to trade above par. When a coupon-paying bond is trading at a premium, an investor's return from the \"c coupons is diminished by receiving a face value less than the price paid for the bond. Holding xed the bonds yield to maturity, for a bond not trading at par, the present A D_ value of the bonds remaining cash flows changes as the time to maturity decreases