Which of the following statements is correct?
A) Changes in working capital have no effect on free cash flow.
B) Free cash flow (FCF) is defined as follows:FCF = EBIT(1 - T) + Depreciation and Amortization- Capital expenditures required to sustain operations- Required changes in net operating working capital
C) Free cash flow (FCF) is defined as follows:FCF = EBIT(1 - T) + Depreciation and Amortization + Capital expenditures
D) Operating cash flow is the same as free cash flow (FCF) .
Correct Answer:
Verified
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