EOC53510 - EOL10 True/False Indicate whether the statement...

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EOL10 True/False Indicate whether the statement is true or false. ____ 1. The corporate valuation model cannot be used unless a company doesn't pay dividends. FALSE ____ 2. Free cash flows should be discounted at the firm's weighted average cost of capital to find the value of its operations. TRUE ____ 3. A poison pill is also known as a corporate restructuring. FALSE ____ 4. The CEO of D'Amico Motors has been granted some stock options that have provisions similar to most other executive stock options. If D'Amico's stock underperforms the market, these options will necessarily be worthless. FALSE ____ 5. ESOPs were originally designed to help improve worker productivity, but today they are also used to help prevent hostile takeovers. TRUE Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 6. Which of the following does NOT always increase a company's market value? a.
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This note was uploaded on 08/30/2011 for the course FIN 101 taught by Professor Ands during the Spring '11 term at Bloomsburg.

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EOC53510 - EOL10 True/False Indicate whether the statement...

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