True/False Questions (2 Points Each) 1 The financial managers's primary goals are to maximize the market value of their firm and raise capital as necessary. 2 Analysts and investors use a general valuation model to calculate the present value of future cash flows of a security. 3 The DFC Model is a basic valuation model for a security that is expected to generate cash payments such as dividends or interest and principal. 4. The value of a busines is the FV of the anticipated cashflows generated by the business. 5 Financial managers need to assess the market value of their bonds and stock to gauge progress. 6 Accurate bond and stock valuation is also a concern when a corporation comtemplates selling securities to raise long-term funds. 7 Nonconstant (Variable) Growth models are seldom used. 8. The FCF Model values the complete business as a part of the procedure to value common equity. 9 Free cash flow represents those amounts in each operating period that are "free" to be distributed to the suppliers of the firm's capital, 10 Current liabilities are short-term obligations of a company that are fixed by agreement. 11 When analysts value the current-liability component of a complete business, they normally just read the value of the current liabilities from the firm's incomm statement. True/False Questions (2 Points Each) 1 The financial managers's primary goals are to maximize the market value of their firm and raise capital as necessary. 2 Analysts and investors use a general valuation model to calculate the present value of future cash flows of a security. 3 The DFC Model is a basic valuation model for a security that is expected to generate cash payments such as dividends or interest and principal. 4. The value of a busines is the FV of the anticipated cashflows generated by the business. 5 Financial managers need to assess the market value of their bonds and stock to gauge progress. 6 Accurate bond and stock valuation is also a concern when a corporation comtemplates selling securities to raise long-term funds. 7 Nonconstant (Variable) Growth models are seldom used. 8. The FCF Model values the complete business as a part of the procedure to value common equity. 9 Free cash flow represents those amounts in each operating period that are "free" to be distributed to the suppliers of the firm's capital, 10 Current liabilities are short-term obligations of a company that are fixed by agreement. 11 When analysts value the current-liability component of a complete business, they normally just read the value of the current liabilities from the firm's incomm statement