Enterprise Free Cash Flows should include which of the following: I. Capital expenditures II. Financing costs III. Taxes IV. Working capital requirements

Question

asked Dec 12, 2021 223k views

1 Answer

Chen · Answer 1 · 2021-12-18T22:50:26+0000

Answer:

I. Capital expenditures

III. Taxes

IV. Working capital requirements

Step-by-step explanation:

Free cash flow = EBIT*(1 - tax rate) + depreciation - changes in net working capital - capital expenditure