I need the answers for last statement in red box.

This statement is (False/True) because ignoring possible tax effects and signals, the value of a firms operations (does not/does) depend on how the

firm distributes its residual earnings.

Tanya is a financial analyst in Blanche Inc. As part of her analysis of the annual distribution policy and its impact on the firm's value, she makes the following calculations and observations: The company generated a free cash flow (FCF) of $132 million in its most recent fiscal year The firm's cost of capital (WACC) is 13%. The firm has been growing at 8% for the past six years but is expected to grow at a constant rate of 7% in the future The firm has 33.00 million shares outstanding The company has $352 million in debt and $220 million in preferred stock Along with the rest of the finance team, Tanya has been part of board meetings and knows that the company is planning to distribute $105 million, which is invested in short-term investments, to its shareholders by buying back stock from its shareholders. Tanya also observed that, at this point, apart from the $105 million in short-term investments, the firm has no other nonoperating assets. Using results from Tanya's calculations and observations, solve for the values in the following tables. Select the best answer provided in the selection list Value Value Value of the firm's operations Number of shares repurchased $2,354.00 million 1.84 million $1,887 million Intrinsic value of equity immediately $1,782.00 million Intrinsic value of equity immediately after the stock repurchase prior to stock repurchase $57.18 $57.18 Intrinsic stock price immediately Intrinsic stock price immediately prior to the stock repurchase after the stock repurchase Based on your understanding of stock repurchases, identify whether the following statement is true or false: The value of operations depends on whether a firm decides to make distributions in the form of dividends or stock repurchases This statement is False because ignoring possible tax effects and signals, the value of a firm's operations does not depend on how the firm distributes its residual earnings