Free Cash Flow Is Defined as

question 56

Multiple Choice

Free cash flow is defined as

• A) cash flows available for payments to stockholders of a firm after the firm has made payments to all others with claims against it.
• B) cash flows available for payments to stockholders and debt holders of a firm after the firm has made payments necessary to vendors.
• C) cash flows available for payments to stockholders and debt holders of a firm after the firm has made investments in assets necessary to sustain the ongoing operations of the firm.
• D) cash flows available for payments to stockholders and debt holders of a firm that would be tax-free to the recipients.

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales activities, such as rent or salaries.

Total Cost

Total cost refers to the complete sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Child Abuse Prevention

Strategies and actions aimed at stopping maltreatment of children, including physical, emotional, sexual abuse, or neglect.

Homosexuals

Individuals attracted to members of the same sex.