"Equity valuation cash flow" is defined as: net sales + depreciation and amortization expense - change in net operating working capital excluding surplus cash) - capital expenditures + net debt issues.

Question

Quizplus · Accepted Answer

Equity valuation cash flow typically refers to free cash flow to equity, which is calculated as net income plus depreciation and amortization, minus changes in working capital and capital expenditures, plus net borrowing. The given definition is incorrect.

"Equity Valuation Cash Flow" Is Defined As: Net Sales