1Free cash flow is the measure of cash available from operations after paying for planned investment acquisitions and planned dividend disbursements.
Answer: True
2If an investor wants to know how much cash a company can free up for new opportunities, such as expanding into a new sales region, they would most likely wish to calculate the company’s free cash flow figure.
3Which of the following sections from the statement of cash flows would include the payment of a note payable by issuing common stock?
4If an investor wants to know how much cash a company can free up for new opportunities, such as expanding into a new sales region, they would most likely look at:
A) free cash flow.
B) cash flow from investing activities.
C) acid ratio.
D) earnings per share.
5Free cash flow is equal to the cash flow from operating activities less cash payments:
A) to retire bonds.
B) for inventory purchases.
C) for planned investments and cash dividends.
D) for planned salary raises.