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Which components should Enterprise Free Cash Flows include? I. Capital expenditures II. Financing costs III. Taxes IV. Working capital requirements
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Which components should Enterprise Free Cash Flows include? I. Capital expenditures II. Financing costs III. Taxes IV. Working capital requirements

User Vitthal Kavitake
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4 votes

Answer:

I , III and IV

Step-by-step explanation:

The free cash flow is the cash flow in which the cash is left after paying off the operating expenses and the capital structure

Free cash flow is

= EBIT × (1 - tax rate) + depreciation & Amortization - changes in net working capital - capital expenditure

Therefore, the correct option is I, III and IV and the same is to be considered

User David Mimno
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