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Question
Which of the following statements is CORRECT?
a. Net cash flow (NCF) is defined as follows:
NCF = Net income -Depreciation and Amortization.
b. Changes in working capital have no effect on free cash flow.
c. Free cash flow (FCF) is defined as follows:
FCF = EBIT(1 - T)
+ Depreciation and Amortization
- Capital expenditures required to sustain operations
- Required changes in net operating working capital.
d. Free cash flow (FCF) is defined as follows:
FCF = EBIT(1- T)+ Depreciation and Amortization + Capital expenditures.
e. Net cash flow is the same as free cash flow (FCF).
Answer
This answer is hidden. It contains 1 characters.
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