Multiple Choice
Which of these statements related to free cash flow is correct?
A) Free cash flow must be fully distributed to the firm's debtors and shareholders.
B) Free cash flow must be positive for a firm to acquire new fixed assets.
C) All, or part, of free cash flow can be used to increase a firm's cash reserves.
D) When capital expenditures are positive, free cash flow will exceed the cash flow from operations.
Correct Answer:
Verified
Correct Answer:
Verified
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