Which of the Following Statements Is CORRECT

Multiple Choice

Which of the following statements is CORRECT?

A) Operating cash flow (OCF) is defined as follows: OCF = EBIT(1-T) - Depreciation and Amortization.
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 and Amortization
- 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) + Depreciation and Amortization + Capital expenditures.
E) Operating cash flow is the same as free cash flow (FCF) .