The free cash flow from the company (FCFC) approach uses only the portion of the cash flows that are available for distribution to shareholders.

Name: The free cash flow from the company (FCFC) approach uses only the portion of the cash flows that are available for distribution to shareholders.
Brand: Quizplus
Rating: 4.8 (60 reviews)

Question

Quizplus · Accepted Answer

The free cash flow to the firm (FCFF) approach considers cash flows available to all capital providers, including both equity and debt holders, not just shareholders.

The Free Cash Flow from the Company (FCFC) Approach Uses