Which of the Following Statements Is CORRECT

question 72

Multiple Choice

Which of the following statements is CORRECT?

• A) A shortcut to calculate free cash flow (FCF) is defined as follows:
• FCF = Net income + 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) Net cash provided (used) by operations is the same as free cash flow (FCF).

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Definitions:

Tuberculin Syringe

A small syringe used for administering tuberculin tests, typically holding 0.5 to 1 ml of fluid.

Phenytoin

An anticonvulsant medication used to treat and prevent seizures by reducing electrical conductance among brain cells.

Trough Level

The lowest concentration of a drug remaining in the body just before the next dose is due, usually measured to ensure therapeutic levels are maintained without reaching toxicity.

Lorazepam

A medication used to treat anxiety disorders, providing a calming effect by acting on the central nervous system.