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Free Cash Flow Provides an Indication of a Company's Ability

Question 85

Multiple Choice

Free cash flow provides an indication of a company's ability to


A) generate cash to invest in new capital expenditures, but not to pay dividends.
B) generate net income.
C) generate cash to pay dividends, but not to invest in new capital expenditures.
D) generate cash to invest in new capital expenditures and to pay dividends.

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