Free cash flow is a good measure of a company's ability to finance long-term assets.

Name: Free cash flow is a good measure of a company's ability to finance long-term assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Free cash flow measures the amount of cash a company generates from operations after accounting for capital expenditures required to maintain or expand its asset base. This is a good measure of a company's ability to finance long-term assets since it represents the cash available to invest in new assets or pay off debt.

Free Cash Flow Is a Good Measure of a Company's