Question: True or False -In the Adjusted Present Value (APV) model, the appropriate discount rate for the tax shield is the after tax cost of debt.

True or False

-In the Adjusted Present Value (APV) model, the appropriate discount rate for the tax shield is the after tax cost of debt.

-One of the strengths of the Economic Profit (EVA) model is that it clearly shows the amount of financing required for a particular year.

-In theory, the Discounted Cash Flow (DCF) model, Economic Profit (EVA) model, and the Adjusted Present Value (APV) model suggest the same intrinsic value if they have the same assumptions.

-The appropriate discount rate for the Economic Value Added (EVA) Model is the levered cost of equity.

-The Discounted Cash Flow model has a specific continuing/terminal value calculation.

-Increased earnings and increased economic profit are always positively linked.

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