Reference no: EM13924977
Assess the likelihood that the following firms will be taken over, based upon your understanding of the free cash flow hypothesis.
a. A firm with high growth prospects, good projects, low leverage, and high earnings.
b. A firm with low growth prospects, poor projects, low leverage, and poor earnings.
c. A firm with high growth prospects, good projects, high leverage, and low earnings.
d. A firm with low growth prospects, poor projects, high leverage, and good earnings.
e. A firm with low growth prospects, poor projects, low leverage, and good earnings. You may use a scale ranging from Low to Moderate to High to Highest in providing your assessment
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