单选题

Which of the following statements is least accurate? A firm's free cash flow to equity (FCFE):

A、 is significantly affected by the amount of dividends paid by the firm.
B、 increases with an increase in the firm's net borrowing.
C、 is a measure of the firm's dividend-paying capacity.

【正确答案】 A

【答案解析】

Dividends, a discretionary cash flow from financing activities, have no bearing on a firm's free cash flow to equity, as can be seen from the formula: FCFE = CFO - FClnv + Net borrowing.