Homework answers / question archive / 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? 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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Which of the following statements is False?

1. 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.

2. b) If a company has a debt amount that varies with certainty, the wacc method is easier to use that the APV method.

3. c) In the APV method one should also consider the present value of the expected costs of financial distress.

4. d) None of the above.