Free cash flow is flow cash from operations less cash used for a. dividends and cash to redeem bonds payable. b. investments in PP&E needed to maintain current operations. c. investments in PP&E needed to achieve desired future operations. d. fixed assets needed to maintain current operations and cash to redeem bonds payable.

Question

Business

Rudy Booker

21 February, 12:28

Free cash flow is flow cash from operations less cash used for a. dividends and cash to redeem bonds payable. b. investments in PP&E needed to maintain current operations. c. investments in PP&E needed to achieve desired future operations. d. fixed assets needed to maintain current operations and cash to redeem bonds payable.

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Izabella Parrish · Answer 1

c. investments in PP&E needed to achieve desired future operations.

Explanation:

FCF = cash from operation - CAPEX (capital expenditures)

being capex the funds used by a company to purchase new assets or mantain his current Property, plant and Equipment (PPE) It also include cash used to upgrade current assets or to acquire technology. The capital expenditures are the investment done through the period to achieve the firm operation and project his future.