Analyzing Statement of Cash Flows II Flashcards

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1
Q

What is “Free Cash Flow”?

A
  1. The actual cash that would be available to the company’s investors after making all investments necessary to maintain the company as an ongoing enterprise.
  2. The internally-generated funds that can be distributed to the company’s investors (e.g., shareholders and bondholders) without impairing the value of the company.
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