In using the FCFF valuation approach, the terminal value at moment t = n, TV_n, is found by: TV_n = FCFF_n/(WACC g).

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Investment in working capital can be calculated by netting an increase in inventory and accounts receivable with an increase in accounts payable and other current liabilities related to operations.

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Using numbers supplied by others without knowing exactly how they are defined increases the likelihood of making errors in valuation.

TRUE OR FALSE

In using the FCFF valuation approach, the terminal value at moment t = n, TV_n, is found by: TV_n = FCFF_n+1/(WACC g).

TRUE OR FALSE