Which of the Following Is the Proper Formula for Computing

question 181

Multiple Choice

Which of the following is the proper formula for computing free cash flow?

• A)= Net Cash Flows from Investing Activities - Purchases of Plant Assets
• B)= Net Cash Flows from Financing Activities + Sales of Plant Assets - Dividends
• C)= Net Cash Flows from Investing,Financing,and Operating Activities - Purchases of Plant Assets + Sales of Plant Assets
• D)= Net Cash Flows from Operating Activities - Dividends - Purchases of Plant Assets + Sales of Plant Assets

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Definitions:

Industrial Production

A measure of the output of the industrial sector of the economy, which includes manufacturing, mining, and utilities.

Personal Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Monetary Policy

Actions taken by the Board of Governors of the Federal Reserve System to influence the money supply or interest rates.