What does free cash flow represent? How is it used to evaluate business performance?

What will be an ideal response?


Free cash flow is the amount of cash available from operating activities after paying for planned investments in long-term assets and after paying dividends to shareholders. Many companies use free cash flow to estimate the amount of cash that would be available for unexpected opportunities. Investors want to know how much cash a company can "free up" for new opportunities.

Business

You might also like to view...

To joke with his coworkers, Richard likes to pretend to trip when walking down the hallway at work. However, the last time that he tripped, he actually fell right on his chin. It was hard for Jackie and the rest of the office not to laugh at him. Trying not to laugh when a coworker trips is an example of what type of emotional regulation?

A. reappraisal B. attention deployment C. suppression D. cognitive change

Business

Which of the following is not a guideline for connecting with people on LinkedIn?

A) ?Never accept invitations from people you don't know. B) ?Send connection requests to friends, classmates, instructors, and former employees. C) ?Accept endorsements. D) ?Join groups.

Business

What types of organization did Ouchi add to markets and hierarchies?

a. Clans b. Tribes c. Fiefdoms d. Slavery

Business

The expected value of a binomial distribution is expressed as np, where n equals the number of trials and p equals the probability of success of any individual trial

Indicate whether the statement is true or false

Business