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Which of the following statements is not correct? Select one: a. The corporate valuation model...

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Finance

Which of the following statements is not correct?

Select one:

a. The corporate valuation model can be used even for a company that does not pay dividends.

b. The corporate valuation model discounts free cash flows by the required return on equity.

c. The corporate valuation model can be used to find the value of a division.

d. An important step in applying the corporate valuation model is forecasting the pro forma financial statements.

e. Free cash flows must grow at a constant rate in order to find the horizon, or terminal, value.

Which of the following is not always a way to increase the value of a company?

Select one:

a. Increase the growth rate of sales.

b. Increase the operating profitability (NOPAT/Sales).

c. Decrease the capital requirement (Capital/Sales).

d. Decrease the weighted average cost of capital.

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