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 look at:

Question

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Free cash flow measures the amount of cash a company generates after deducting its capital expenditures. This is an important metric for investors when it comes to evaluating a company's ability to pursue growth opportunities. By looking at the free cash flow, an investor can determine how much cash the company is generating that can be used to fund growth initiatives, such as expanding into a new sales region. Cash flow from investing activities (B) is also important to consider, but it only provides a partial picture of a company's cash position. The acid ratio (C) measures a company's short-term liquidity and its ability to pay its current liabilities with its current assets. Earnings per share (D) is a profitability metric that does not provide information on a company's cash position.

If an Investor Wants to Know How Much Cash a Company