Explain "Free" Cash Flows

question 33

Essay

Explain "free" cash flows.Describe which types of cash flows are free and which are not.How do free cash flows available for debt and equity stakeholders differ from free cash flows available for common equity shareholders?

---

Definitions:

Lead Times

The period between the initiation and completion of a process or project, such as the time from placing an order to delivery or from product development to market launch.

Lead Times

The total time taken for a process from initiation to completion, often used in the context of supply chain and manufacturing.

Inventory Availability

The ability of a company to meet customer demand by having sufficient stock on hand, directly impacting customer satisfaction and sales.

Purchase Orders

Official documents issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.