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Which of the following statements is False? a) The wacc method, and the FTE method are easier to use when a firm follows a constant debt-to-equity ratio policy, whereas the APV method is easier to use when a company holds a constant and perpetual debt
Which of the following statements is False?
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a) The wacc method, and the FTE method are easier to use when a firm follows a constant debt-to-equity ratio policy, whereas the APV method is easier to use when a company holds a constant and perpetual debt.
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b) If a company has a debt amount that varies with certainty, the wacc method is easier to use that the APV method.
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c) In the APV method one should also consider the present value of the expected costs of financial distress.
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d) None of the above.
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