The change in a firm's future operating profit is another way to state its increase in ________.

Question

Quizplus · Accepted Answer

The change in a firm's future operating profit is another way to state its increase in gross cash flow. Operating profit reflects the company's earnings from its core business operations, excluding non-operating income and expenses. An increase in operating profit directly impacts the gross cash flow, which is the cash generated from the company's operational activities before accounting for financial costs and investments. Terminal value, net working capital, and WACC (Weighted Average Cost of Capital) are related to different aspects of a firm's financial analysis and do not directly represent a change in operating profit.

The Change in a Firm's Future Operating Profit Is Another