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The Cashflow of the Firm Is Defined as the Cashflow

Question 39

Multiple Choice

The cashflow of the firm is defined as the cashflow of the assets. This cashflow must be equal to:


A) cashflow to equity minus cashflow to debtholders.
B) cashflow to debtholders minus cashflow to equity.
C) cashflow to governments plus cashflow to equity.
D) cashflow to equity plus cashflow to debtholders.

Correct Answer:

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