Investors who want to know the amount of cash a company has available for new opportunities,such as expanding into a new sales region,should analyze the company's free cash flow.

Question

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Free cash flow is the cash available after subtracting capital expenditures from cash generated from operations. This cash can be used for new opportunities such as expanding into a new sales region. Therefore, investors who want to know the amount of cash a company has available for new opportunities should analyze the company's free cash flow.

Investors Who Want to Know the Amount of Cash a Company