Free Cash Flow: Definition, importance to investors and businesses. Search financial publications online for examples of free cash flow and its use in financial literature. Explain the context and...

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Free Cash Flow: Definition, importance to investors and businesses.


Search financial publications online for examples of free cash flow and its use in financial literature. Explain the context and significance of this term in the article.

Answered Same DaySep 07, 2021

Answer To: Free Cash Flow: Definition, importance to investors and businesses. Search financial publications...

Sumit answered on Sep 07 2021
147 Votes
Free Cash Flow can be defined as the Cash left with the company after making all the adjustments which can be used by the company to make payments to creditors, dividend to shareholders and share buyback. This amount is used by the investors to determine whether the company will have enough cash to make the above payments. The formula used to determine the Free Cash Flow is as under:
Net Income + Depreciation – Change in Working Capital – Capital...
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