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Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
ISBN: 9781285867977

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BuyFindarrow_forward

Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
ISBN: 9781285867977
Textbook Problem

What is free cash flow? If you were an investor, why might you be more interested in free cash flow than net income?

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.

Explanation
  • The total cash flow generated by operations, investment and financing activities is reported in the statement of cash flow.
  • The cash flows are net o...

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