When Debating the Issue of Whether to Use Free Cash

question 54

Short Answer

When debating the issue of whether to use free cash flows or earnings in a valuation model,economists sometimes argue that ____________________ can be subject to purposeful management by a firm and thus make them less useful.

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Definitions:

Manufacturers

Companies or entities that make goods through a process involving raw materials, components, or assemblies, usually on a large scale.

Organizational Buyers

Entities such as companies, governments, and institutions that purchase goods or services for purposes other than personal consumption, often involving more complex processes and larger transactions than individual consumers.

Manufacturers

Companies or individuals that produce finished goods from raw materials through the use of various processes.

Government Agencies

Organizations established by a government to implement policy, enforce laws, and oversee specific areas of public administration.