Free cash flow:
A)is not a solvency-based measure that helps creditors and investors understand how much discretionary cash flow a company has left from operating activities.
B)is calculated as cash provided (used)by operating activities plus net capital expenditures and dividends paid.
C)helps creditors and investors understand how much discretionary cash flow a company has left from its operating activities.
D)helps to understand how much discretionary cash flow a company has left from its operating activities that can be used to expand operations, increase debt, or pay additional dividends.

Question

Quizplus · Accepted Answer

The Answer of Free cash flow:
A)is not a solvency-based measure that helps creditors and investors understand how much discretionary cash flow a company has left from operating activities.
B)is calculated as cash provided (used)by operating activities plus net capital expenditures and dividends paid.
C)helps creditors and investors understand how much discretionary cash flow a company has left from its operating activities.
D)helps to understand how much discretionary cash flow a company has left from its operating activities that can be used to expand operations, increase debt, or pay additional dividends.

Free Cash Flow