Select all that is/are true about the cash flow of a firm A . in measuring...

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Finance

Select all that is/are true about the cash flow of a firm
A . in measuring free cash flows we are more interested inconsidering cash flows an accounting perspective rather than theperspective of the firm;s shareholders and investors.
B. Net cash flow does not include after tax interest expense
C.While an income statement measures a company's profit,profitsare not the same as cash flows;profits are calculated on a cashbasis rather than an accruals basis.
D.A firm which invested more cash in assets and working capitalthan operations,will have a positive operating cash flow and anegative cash flow from assets.
E. Free cash flow from an operating perspective must equal freecash flow from a financing perspective
F.If dividends paid is greater than net equity sold for theyear,then the cash flow to stockholders is negative.
G.FCF may be defined as net operating profit after taxes (NOPAT)minus the amount of net investment in operating working capital andfixed assets necessary to sustain the business.

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3.9 Ratings (663 Votes)

Points D E G are true Point F is true based on an interpretation of the words used It is that the words used are cash flow TO stockholders which I take as cash flows from the firms See Answer

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