To Calculate Free Cash Flow,you Must Deduct Capital Expenditures from the Cash

question 30

True/False

To calculate free cash flow,you must deduct capital expenditures from the cash flow from operations.

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Definitions:

Total Dollar Return

The total gain or loss on an investment over a specific period, combining both capital gains and any dividends or interest received.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

SML

Stands for the Security Market Line, which represents the expected return of a market portfolio as a function of systematic, or market, risk.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss.