In looking at Free Cash Flow, which of the following is true? The value of any asset business is based solely on the free cash flow and it is important to buyers and sellers. OFCF's are the discounts received from vendors for purchases made The net income of a company should be equal to its free cash flow. OFCF's represent the funds available to business owners that can be withdrawn after all business related costs and investments have been paid.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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In looking at Free Cash Flow, which of the following is true?
The value of any asset business is based solely on the free cash flow and it is important to buyers and sellers.
FCF's are the discounts received from vendors for purchases made
The net income of a company should be equal to its free cash flow.
FCF's represent the funds available to business owners that can be withdrawn after all business related costs and
investments have been paid.
Transcribed Image Text:In looking at Free Cash Flow, which of the following is true? The value of any asset business is based solely on the free cash flow and it is important to buyers and sellers. FCF's are the discounts received from vendors for purchases made The net income of a company should be equal to its free cash flow. FCF's represent the funds available to business owners that can be withdrawn after all business related costs and investments have been paid.
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