Which of the following statements about the FCF valuation model are true? Check all that...
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Which of the following statements about the FCF valuation model are true? Check all that apply. - A company's FCFs are a function of (1) how quickly the company grows its sales and assets, (2) managers control the firm's costs, and (3) choose to finance the company's activities. The model is useful because it provides its decision- makers with insights into the quality of their decision- making, as measured by the intrinsic value of their company. The FCF valuation model recognizes that a firm's value is a function of its risk-including its use of debt and equity financing and the markets in which it operates. The model can be applied to companies that either pay or do not pay a dividend-but it cannot be applied to privately-held companies
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