Free cash flow is the cash generated by a company's operations, net of cash outflows for capital expenditures, dividends, and other investments. Therefore, it is the cash flow from operations minus cash used to purchase fixed assets to maintain productivity and cash used for dividends.

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Free Cash Flow Is

Question 77

Multiple Choice

Free cash flow is:

A) all the cash in the bank.
B) the cash flow from operations.
C) the cash flow from financing, less cash used to purchase fixed assets to maintain productivity and cash used for dividends.
D) the cash flow from operations, less cash used to purchase fixed assets to maintain productivity and cash used for dividends.

Correct Answer: