Asked by
DIANAROSE LISBOS
on Nov 13, 2024Verified
Free cash flow equals cash provided by operations less capital expenditures and cash dividends.
Free Cash Flow
Net cash provided by operating activities adjusted for capital expenditures and dividends paid.
Capital Expenditures
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.
Cash Dividends
Payments made by a corporation to its shareholder members as a distribution of profits.
- Understand the computation and significance of free cash flow.
Verified Answer
CR
Learning Objectives
- Understand the computation and significance of free cash flow.