Which of the Following Statements Is CORRECT

question 104

Multiple Choice

Which of the following statements is CORRECT?

• A) Most rapidly growing companies have positive free cash flows because cash flows from existing operations generally exceed fixed asset purchases and changes to net operating working capital.
• 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
• - 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)+ Capital expenditures.
• E) Managers should be less concerned with free cash flow than with accounting net income.Accounting net income is the "bottom line" and represents how much the firm can distribute to all its investors-both creditors and stockholders.

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Definitions:

Doppler

A diagnostic procedure using ultrasound waves to produce images of internal structures of the body or to measure the movement of substances within the body, such as blood flow.

Pitting Pedal Edema

Swelling in the lower legs and feet that leaves an indent when pressed, often due to heart failure or venous insufficiency.

Tortuous Varicose Veins

Veins that have become enlarged and twisted, often appearing bulging and blue or dark purple, and can cause pain or discomfort.

Pedal Pulses

The palpable beats in the foot that reflect the circulation and blood flow to the area, important in assessing vascular health.