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What must occur to make using net cash flows into the firm result in the san OA the firm must pay an increasing dividend payment each year OB. The cost of equity must be greater than the overall WACC OC. the firm must generate a rate of return on reinvested free cash flow e OP.All of the above mynt occur

What must occur to make using net cash flows into the firm result in the san OA the firm must pay an increasing dividend payment each year OB. The cost of equity must be greater than the overall WACC OC. the firm must generate a rate of return on reinvested free cash flow e OP.All of the above mynt occur

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 16 What must occur to make using net cash flows into the firm result in the same estimate of value as using dividends paid out of the firm? OA. the firm must pay an increasing dividend payment each year OB. The cost of equity must be greater than the overall WACC OC. the firm must generate a rate of return on reinvested free cash flow equal to the discount rate used by the investor D. All of the above must occur
Transcribed Image Text:QUESTION 16 What must occur to make using net cash flows into the firm result in the same estimate of value as using dividends paid out of the firm? OA. the firm must pay an increasing dividend payment each year OB. The cost of equity must be greater than the overall WACC OC. the firm must generate a rate of return on reinvested free cash flow equal to the discount rate used by the investor D. All of the above must occur
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