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The primary objective of the corporate management team to maximize shareholder woolth. The company's board of directors and the shareholders evaluate and review managerial actions

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The primary objective of the corporate management team to maximize shareholder woolth. The company's board of directors and the shareholders evaluate and review managerial actions based on the growth in the value of the firm. Based on your understanding of what determines a firm's value, review the following Option Option What does the value of a firm depend on? The firm's ability to generate positive cash flows now and in the future The firm's past ability to generate positive cash flows Which of the options is most accurate Option A Option When determining the value of fim, which of the following statement is true? Investors brevis avers Other things bring equs, the prefer to pay more for stocks that are less risky and that have relatively more cert.cash Bows than other stocks Managers strive to increase the value of a lim. An increase in the intrinsic value of them's stockor is good mesure of the increase in the value o the lim.Intrinsic value of a firm's stock price is determined by calculating the present values of its free cash flows (FC) discounted at a rate called the weighted average cost of capital (WACC). Tyler is a team member in Corporate Finance at a digital content production company. He is required to forecast the free cash flows that the company will be able to generate in the rost three years. Tyler takes into account only the following equation in his eniculation FCE Sales Revenues - Operating costs - Operating Taxes wa his calculation be an appropriate estimate of the FCF? No Ye Why or why not? Check all that apply. Because his calculation fails to indude the increase in the working capital required to grow sales Because his calculaborals to recognize the increase in sales rues Decise calculation fails to include both the working en tailand capital say to the company's perton because he is stabion fails to include the value of the debt that the forces on its balance sheet

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