Which measure relies on the cash flow remaining after capital expenditures and after interest and principal repayments on debt have been made?
A) Free cash flow to the firm
B) Weighted average cost of capital
C) Economic value added
D) Free cash flow to equity

Question

Quizplus · Accepted Answer

Free cash flow to equity (FCFE) measures the cash flow available to equity shareholders after accounting for capital expenditures, interest, and principal repayments on debt.

Which Measure Relies on the Cash Flow Remaining After Capital