Question

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

Answer 1

Answer:

I , III and IV

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