Which of the following statements regarding the selection of how many years to use in estimating FCFF is FALSE?
A) There is no set rule for how many years to use.
B) Common practice suggest five to ten years is a reasonable amount of time to estimate individual year cash flows.
C) One guiding principle is to project out the number of years until you're willing to assume that a firm's free cash flows will grow at a constant rate.
D) All of the above are true.
D
You might also like to view...
In some high tech industries, where customers buy systems made up of components manufactured by several suppliers, many suppliers are forming _________________ to develop and jointly market and sell integrated systems.
A. Matrix organizations B. Co-marketing alliances C. Multilevel systems D. Leveraged buyouts E. Span of control documentation systems
Despite all the talk about the emerging global village, differences between countries such as cultures and political systems are very profound and enduring
Indicate whether the statement is true or false.