Question: True or False -All assets and liabilities whose cash flows are not included in the Discounted Cash Flow value of operations must be separately valued

True or False

-All assets and liabilities whose cash flows are not included in the Discounted Cash Flow value of operations must be separately valued and added to or subtracted from the Discounted Cash Flow valuation. This is true for both on and off balance sheet assets and liabilities.

-Enterprise value is the sum of all ownership interests in a company and claims on its assets from both debt and equity holders.

-Free cash flow, also called unlevered FCF, is the cash generated by a company after paying all cash operating expenses and taxes, as well as the funding of CAPEX and working capital, but prior to the payment of any interest expense.

-In a market economy, a companys ability to create value for its shareholders and the amount of value it creates are the chief measures by which it is judged.

-When valuing firms the Internal Rate of Return, Payback Period as well as the Net Present Value are useful in making a decision.

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