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The Cash Flow of the Firm Is Defined as the Cash

Question 47

Multiple Choice

The cash flow of the firm is defined as the cash flow of the assets. This cash flow must be equal to:


A) cash flow to equity minus cash flow to debtholders.
B) cash flow to debtholders minus cash flow to equity.
C) cash flow from changes in working capital plus cash flow to equity.
D) cash flow to equity plus cash flow to debtholders.

Correct Answer:

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