The amount available to finance planned expansion of operating capacity,reduce debt,pay dividends,or repurchase stock is distributable (or free)cash flow.

Question

Quizplus · Accepted Answer

The statement accurately defines distributable (or free) cash flow as the amount of cash available after accounting for necessary capital expenditures to support existing operations. This excess cash can be used to finance growth, reduce debt, pay dividends, or repurchase stock.

The Amount Available to Finance Planned Expansion of Operating Capacity,reduce