Which of the following is not true regarding free cash flows (FCFs)

a. Investors can estimate the intrinsic value of a firm by discounting forecasted FCFs.
b. Spending FCFs will not affect the firm’s ability to generate more.
c. FCFs can be obtained directly from the Statement of Cash Flows.
d. Unlike Cash From Operating Activities, FCFs do not include interest expense.


ANSWER: C

Business

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