Free Cash Flow Is Calculated as

question 67

Multiple Choice

Free cash flow is calculated as

• A)net income minus net capital expenditures minus dividends paid.
• B)net income minus dividends paid.
• C)net cash provided (used)by operating activities minus net capital expenditures minus dividends paid.
• D)net cash provided (used)by investing activities minus net capital expenditures minus dividends paid.

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource, such as labor.

Productivity

The measure of efficiency in converting inputs into useful outputs in production.

Input Demand Curves

Graphical representations that show the quantity of inputs a firm demands at different input prices.

Rent

Payment, typically made monthly, for the use of land, a building, an apartment, an office, or other property.