Which of the following statements is CORRECTσ
A) net cash flow (ncf) is defined as follows:σncf = net income -depreciation and amortization.
B) changes in working capital have no effect on free cash flow.
C) free cash flow (fcf) is defined as follows:σfcf = ebit(1 σ t) σ+ depreciation and amortizationσσ capital expenditures required to sustain operationsσσ required changes in net operating working capital.
D) free cash flow (fcf) is defined as follows:σfcf = ebit(1 σ t) + depreciation and amortization + capital expenditures.
E) net cash flow is the same as free cash flow (fcf) .
Correct Answer:
Verified
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