Free cash flow is commonly referred to as a firm's:

A) Cash flow to stockholders.
B) Cash flow from assets.
C) Cash flow to creditors.
D) Net working capital.
E) Liquid capital.

Question

Free cash flow is commonly referred to as a firm's:A)  Cash flow to stockholders.B)  Cash flow from assets.C)  Cash flow to creditors.D)  Net working capital.E)  Liquid capital.

Julia Terrones · Accepted Answer

Final Answer : B, Explanation :  Free cash flow is often referred to as a firm's cash flow from assets, indicating the amount of cash that is available for distribution among all the securities holders of an organization, including both creditors and stockholders. It is a measure of financial performance that shows how much cash is generated by the company's operations that can be potentially distributed to its securities holders after all operating expenses and capital expenditures have been paid.

Free cash flow is commonly referred to as a firm's:

A) Cash flow to stockholders.
B) Cash flow from assets.
C) Cash flow to creditors.
D) Net working capital.
E) Liquid capital.

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