A Firm's Capital Structure Does Not Affect Its Free Cash

question 58

True/False

A firm's capital structure does not affect its free cash flows as discussed in the text,because FCF reflects only operating cash flows,which are available to service debt,to pay dividends to stockholders,and for other purposes.

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Definitions:

Development

The process of growth or progression through a sequence of physical, psychological, or societal changes and stages.

Classical Conditioning

An educational method that arises from linking an external stimulus with a stimulus that occurs naturally.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

Meaningful Stimulus

Any input from the environment that is significant and can induce a response because of its relevance to the individual.