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Free Cash Flow Measures

Question 38

Multiple Choice

Free cash flow measures:


A) the company's ability to generate enough cash from investing activities to cover capital expenditures,and determines how much cash is remaining to invest elsewhere in the company.
B) the company's ability to generate enough cash from daily operations to cover capital expenditures,and determines how much cash is remaining to invest elsewhere in the company.
C) the company's ability to generate enough cash from daily operations to cover current liabilities.
D) the company's ability to generate enough cash from financing operations to cover current liabilities.
E) None of the answer choices is correct.

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