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A Reference Parameter

question 14

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A reference parameter:


Definitions:

Free Cash Flow

The net cash flow a business produces following the deduction of operational expenses and investment in maintaining its fixed assets.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement.

Net Debt

A financial metric that calculates a company's overall debt situation by subtracting its total cash and equivalent assets from its total short-term and long-term debt.

Cost of Equity

The rate of return required by a company's shareholders for investing in the company's equity.

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