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Which of the Four Definitions Offered Best Represents 'Free Cash

Question 12

Multiple Choice

Which of the four definitions offered best represents 'Free cash flow' for a business entity:


A) Cash flow from operations minus absolute value of cash flow from investing.
B) Cash flow from operations minus absolute value of dividends paid minus interest payments.
C) Cash flow from operations minus investments for the maintenance of the competitive position minus absolute value of average dividends paid minus interest payments.
D) Cash flow from operations minus debt reimbursements.

Correct Answer:

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