The Costs Associated with Noninterest-Bearing Current Liabilities, Which Are Included

question 19

Multiple Choice

The costs associated with noninterest-bearing current liabilities, which are included in the firm's cost of sales and other operating expenses,

• A) are subtracted in the calculation of free cash flow from the firm (FCFF).
• B) are added in the calculation of FCFF.
• C) are not a factor in the calculation of FCFF
• D) none of the above

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Definitions:

Z-scores

An indicator that shows the number of standard deviations a data point is away from the average.

Greater Than

A mathematical symbol (>) used to indicate that the value on the left side is larger than the value on the right side.

Z-scores

Standardized scores that measure the distance of a score from the mean, indicating how many standard deviations an element is from the mean.