Which of the Following Statements Is Correct

question 34

Multiple Choice

Which of the following statements is correct?

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