In looking at Free Cash Flow, which of the following is NOTtrue? Select one: a. FCF is t
In looking at Free Cash Flow, which of the following is NOTtrue?
a. FCF is the amount of cash that if withdrawn would harm thefirm's ability to operate and to produce future cash flows.
b. FCF is the cash flow that is available for interest anddividends after the company has made necessary investments incurrent and fixed assets that are necessary to sustain ongoingoperations.
c. If a firm is reporting its income in accordance withgenerally accepted accounting principles, then its net income asreported on the income statement should be equal to its free cashflow.
d. The value of any asset is the present value of the cash flowsthe asset is expected to provide. The cash flows a business is ableto provide to its investors is its free cash flow. This is thereason that FCF is so important in finance.