Free Cash Flow Is Defined As

question 80

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 will 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.

Acknowledge the role of professional advice in preparing for the delivery of negative organizational announcements.

Comprehend the implications of social media dynamics in the context of negative news.

Learn the impacts of carelessness in message crafting on perceptions and relationships.

Identify and describe the types of epithelium found in various body membranes.

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Definitions:

Variable Cost Per Unit

The cost that varies with the level of output or activity, calculated on a per-unit basis.

Fixed Costs

Expenses that do not change with changes in the level of production or sales, such as rent, salaries, and insurance.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, used to cover fixed costs and generate profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit; an important metric in understanding per unit profitability and in break-even analysis.