Which of these is the value of a firm's cash flows from real assets after reinvestment costs?

Question

Quizplus · Accepted Answer

Free cash flows are the cash flows from a firm's operations that are available for distribution to the firm's investors after taking into account the reinvestment needs of the firm. It is calculated as operating cash flows minus capital expenditures and changes in net working capital. Therefore, free cash flows represent the cash that is available to the firm's investors after all the necessary capital expenditures and working capital investments have been made.

Which of These Is the Value of a Firm's Cash