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Question 1 2 . Which of the following statements is not true with respect to the framework below? ( This question is worth 1 point

Question 12. Which of the following statements is not true with respect to the framework below? (This question is worth 1 point)
Use the following information to answer this question.
Let n=3
Let t=1
Let Free Cash Flow:
in Period 1=$100
in Period 2=$100
in Period 3=$100
Let Weighted Average Cost of Capital:
in Period 1=.05
in Period 2=.05
in Period 3=.05
a) The framework is used to calculate the intrinsic value of a company.
b) The denominator exponent in Period 1 is ?1, in Period 2 is ?2, and in Period 3 is ?3.
c) The denominator in Period 1 is 1.05, in Period 2 is 1.1025, and in Period 3 is 1.157625.
d) The intrinsic value of the company is $272.32.
e) Company investors would not care about the intrinsic value of the company.
f) The intrinsic falue of the company can be increased by increasing its Free Cash Flow.
g) The intrinsic value of the company can be increased by decreasing its Weighted Average Cost of Capital.
Question 12(a, b, c, d, e, f, or g)q,
Question 13. Which of the following statements is not true with respect to the framework below? (This question is worth 1 point)
For the purpose of this question, the term "investor" shall include the providers of equity capital and debt capital to a company.
a) One way of looking at the numerator, Net Cash Flow, is that the term "Net" means when you subtract the cash flowing out of a company from the cash flowing into a company, whatever is left is the "Net" flows of cash into and out of the company.
b) One way of looking at the term "Rate" in the denominator is what it costs the company to use investor capital.
c) One way of looking at the term "Rate" in the denominator is that "Rate" is the return investors expect to receive for allowing the company to use investor capital.
d) One way of looking at the term "Rate" in the denominator is that cost to the company to use investor capital is generally the same as the return investors expect to receive for allowing the company to use investor capital.
e) In this course, the framework is called the Universal Measure of Asset Value because different versions of this fundamental framework can be used to measure the value today of the following assets: company, project, bond, stock.
f) The Net Cash Flow of a company can be increased by increasing its cash outflows, keeping its cash inflows constant.
Question 13(a,b,c,d,e, or f)
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