Which of the Following Statements Is CORRECT

question 32

Multiple Choice

Which of the following statements is CORRECT?

• A)Operating cash flow (OCF) is defined as follows: OCF = EBIT(1-T) - Depreciation and Amortization.
• B)Changes in working capital have no effect on free cash flow.
• C)Free cash flow (FCF) is defined as follows: FCF = EBIT(1 - T)
• + Depreciation and Amortization
• - Capital expenditures required to sustain operations
• - Required changes in net operating working capital.
• D)Free cash flow (FCF) is defined as follows: FCF = EBIT(1-T)+ Depreciation and Amortization + Capital expenditures.
• E)Operating cash flow is the same as free cash flow (FCF).

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Definitions:

Physiological Responding

The body's automatic reactions to stimuli, including changes in heart rate, hormone levels, and brain activity.

Maladaptive Methods

Strategies or behaviors that are ineffective or counterproductive in managing situations or meeting needs, often worsening the situation or condition.

General Adaptation Syndrome

A theoretical framework describing the body's short-term and long-term reactions to stress, comprising stages of alarm, resistance, and exhaustion.

Alarm Reaction

The initial stage of the General Adaptation Syndrome, characterized by the body's immediate physical response to a perceived stressor.