Which of the Following Is NOT a Variable Used in the Calculation

question 7

Multiple Choice

Which of the following is NOT a variable used in the calculation of free cash flow (FCF) ?

• A)sales (revenues)
• B)operating expenses and taxes
• C)expected (required) investments in operating capital
• D)interest and other financing costs

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Definitions:

Significant Influence

A concept in accounting and finance where an investor has the power to participate in, but not control, the financial and operating policy decisions of an investee.

Investment Account

A financial account that holds securities, shares, or other investments made by an individual or entity with the objective of earning returns.

Net Income

The ultimate earnings of a company after all deductions, including expenses and taxes, from revenue.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.