Which of the Following Statements Is CORRECT

question 72

Multiple Choice

Which of the following statements is CORRECT?

• A) Net cash flow (NCF) is defined as follows: NCF= Net income - Depreciation and Amortization.
• B) Changes in working capital have no effect on free cash flow.
• C) Free cash flow (FCF) is defined as follows: FCF = EBIT(1 - T) + Depreciation and Amortization - Capital expenditures required to sustain operations - Required changes in net operating working capital.
• D) Free cash flow (FCF) is defined as follows: FCF = EBIT(1 - T) + Depreciation and Amortization + Capital expenditures.
• E) Net cash flow is the same as free cash flow (FCF).

---

Definitions:

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating metabolism and energy levels, among other functions.

Neural Networks

Systems of interconnected neurons that process information in both the human brain and in artificial constructs, simulating the way biological nervous systems work.

Gravitational Forces

The attraction between two bodies due to their mass, which dictates the motion of planets, stars, and other objects in the universe as described by the law of gravity.

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream to regulate various bodily functions.