Free cash flow calculations can be broken down into three parts: cash flows from operations,cash flows associated with working-capital requirements,and financing cash flows relating to interest and dividend payments.

Question

Quizplus · Accepted Answer

Free cash flow calculations typically consist of cash flows from operations and cash flows associated with investing activities (such as capital expenditures), not financing cash flows related to interest and dividend payments.

Free Cash Flow Calculations Can Be Broken Down into Three