Examlex
Which of the following is NOT one of the guidelines to becoming an effective follower?
Free Cash Flow
The amount of cash generated by a company after accounting for capital expenditures, essential for maintaining or expanding the asset base.
Terminal Value
The value of an investment or project at the end of a forecast period, considering all future cash flows as a single lump sum value.
FCFF
Free Cash Flow to the Firm (FCFF) is a measure of a company's financial performance that shows how much cash is available for distribution among all securities holders after paying taxes, reinvesting in the business, and meeting working capital needs.
FCFE
Free Cash Flow to Equity, a measure of how much cash can be paid to equity shareholders of the company after all expenses, reinvestment, and debt repayments.
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