If an investor wants to know how much cash a company can free up for new opportunities, such as expanding into a new sales region, they would most likely wish to calculate the company's free cash flow figure.

Question

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Free cash flow is a commonly used metric that measures the amount of cash a company has left over after it has paid all of its expenses, capital expenditures, and debt obligations. This figure represents the cash that is available to the company for new opportunities, such as expanding its business or making strategic investments. Therefore, if an investor is interested in assessing a company's ability to fund new growth initiatives, they will likely focus on the company's free cash flow figure.

If an Investor Wants to Know How Much Cash a Company