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:

Superior Colliculi

Structures located in the midbrain that are involved in processing visual information and controlling eye movements.

Dura Mater

The tough outermost membrane that surrounds the brain and spinal cord, offering protection.