Free cash flow equals:

Question

Quizplus · Accepted Answer

Free cash flow is the cash generated by a company's operations after accounting for capital expenditures or investments in plant assets. Therefore, option C - net cash provided by operating activities minus cash payments for investments in plant assets - is the correct choice. Option A is incorrect because it includes cash received from investing activities, whereas free cash flow only takes into account cash generated by the company's operations. Option B is incorrect because it includes financing activities, which are not relevant to calculating free cash flow. Option D is incorrect because it only considers the net change in cash, without considering investments in plant assets.

Free Cash Flow Equals