Which One of the Following Components Is Not a Component

question 46

Multiple Choice

Which one of the following components is not a component of the equity valuation cash flow calculation?

• A) net income
• B) depreciation and amortization expense
• C) change in net operating working capital without surplus cash)
• D) capital expenditures
• E) net equity repurchases

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Definitions:

Asset-Based

An approach or strategy that focuses on utilizing a company's tangible and intangible assets to secure financing or drive performance.

Operating Assets

Assets that are used for the day-to-day functioning of a business, contributing directly to its earnings.

Income

The financial gain or revenue received by an individual or business, typically from labor, investments, or sales.

Market

The environment in which goods and services are exchanged between buyers and sellers, often influenced by supply and demand.