Which of the Following Is True for Free Cash Flow

question 1

Multiple Choice

Which of the following is true for free cash flow?
I.Free cash flow is easier to calculate than operating cash flow.
II.Estimated capital expenditures are subtracted from operating cash flow.
III.Estimated capital expenditures are added to operating cash flow.
IV.A negative free cash flow indicates that the company needs additional financing.

• A)I,II,& III
• B)I & III
• C)III & IV
• D)II & IV

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Definitions:

Underestimate

To assess something as smaller or less important than it actually is; the act of valuing or judging something below its true value or potential.

Overestimate

To assess or regard something as more extensive, important, or capable than it actually is.

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A psychoactive drug from the Cannabis plant, used both medicinally and recreationally for its psychoactive effects.

Alcohol Consumption

The intake of alcoholic beverages, potentially affecting an individual's physical and mental state.