The term 'free cash flow' generally refers to:
A) Money that is raised through grants and donations
B) Debt that requires no initial interest payments
C) Cash that is generated in excess of fund required to sustain operations and purchase assets
D) Capital raised through an initial public offering or other equity financing
E) None of the above

Question

Quizplus · Accepted Answer

Free cash flow refers to the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. It's an important measure of financial health, indicating the amount of cash available for the company to repay creditors, pay dividends, and invest in new projects without relying on external financing.

The Term 'Free Cash Flow' Generally Refers To