Free cash flow . Introduction: Cash flow is the inflow and outflow of cash and capital in a business where, a positive cash flow implies rise in the liquid assets, return on capital to the shareholders and more whereas a negative cash flow includes decreasing in the firm’s liquid assets. The free cash flow indicates whether the company has adequate cash flow to cover both the operating as well as the fixed and current assets investments.

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Chapter 4, Problem 4.4WUE

Summary Introduction

To calculate: Free cash flow.

Introduction:

Cash flow is the inflow and outflow of cash and capital in a business where, a positive cash flow implies rise in the liquid assets, return on capital to the shareholders and more whereas a negative cash flow includes decreasing in the firm’s liquid assets.

The free cash flow indicates whether the company has adequate cash flow to cover both the operating as well as the fixed and current assets investments.

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