All of the Following Statements About Free Cash Flow Are

question 175

Multiple Choice

All of the following statements about free cash flow are false except

• A)significant free cash flow indicates less potential to finance new investment.
• B)free cash flow is most commonly calculated by subtracting capital expenditures from cash provided by operations and then adding cash dividends.
• C)free cash flow is not reported on the statement of cash flows.
• D)significant free cash flow indicates less potential to pay additional dividends.

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