Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
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Chapter 3, Problem 7Q
Summary Introduction

To explain: The free cash flow and its importance for investor.

Introduction:

Free Cash Flow: The cash generated over and above required by business operations and capital expenditure is called free cash flow. Statement of cash flow reports generated net amount of cash or consumed by the business.

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What is free cash flow? If you were an investor, why might you be more interested in free cash flow than net income
What is free cash flow, and how does it work? If you were an investor, why could you be more concerned with free cash flow than you would be with net profit?
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Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

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