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Which of the following statements is most correct? a. Free cash flows are called free because the cost of capital for these cash flows is
Which of the following statements is most correct?
a. Free cash flows are called free because the cost of capital for these cash flows is zero. | ||
b. Stock is valuable only because it generates cash flows for the investor. | ||
c. Managers can affect firm value by changing the riskiness of its cash flows. | ||
d. (a) and (b) are correct. | ||
e. (b) and (c) are correct. |
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