Which one of these would not be paid from free cash flow?
A) Cash dividends
B) Repayment of principal on a long-term debt
C) Repurchase of outstanding shares of common stock
D) New equipment purchase

Question

Quizplus · Accepted Answer

Free cash flow is typically used for distributions to shareholders (dividends), debt repayment, and share repurchases. New equipment purchases are capital expenditures, which are subtracted from operating cash flow to calculate free cash flow.

Which One of These Would Not Be Paid from Free