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26 December, 16:24

Free cash flow is the measure of operating cash flow available for corporate purposes after providing sufficient fixed asset additions to maintain current productive capacity.

a. True

b. False

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Answers (1)
  1. 26 December, 16:57
    0
    True.

    Free cash flow is one of the operating measures for a firm's profits by computing the cash flow available after subtracting any fixed asset costs to maintain the current production levels. This amount can be reinvested in the firm or paid to company shareholders as a dividend.
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