Which of the following statements is NOT CORRECT? A) The constant growth model cannot be used for a zero growth stock, w

[answerhappygod]

Which of the following statements is NOT CORRECT?
A) The constant growth model cannot be used for a zero growth
stock, where free cash flows are expected to remain constant over
time.
B) An important step in applying the free cash flow valuation
model is forecasting the firm's pro forma financial statements.
C) The free cash flow valuation model can be used both for
companies that pay dividends and those that do not pay
dividends.
D) Free cash flows are assumed to grow at a constant rate beyond
a specified date in order to find the horizon, or terminal,
value.
E) The free cash flow valuation model can be used to find the
value of a division.
F) The free cash flow valuation model discounts free cash flows
by the required return on equity.