Busıness Fınance I Deneme Sınavı Sorusu #1181350

Which of the following shows the ability of the company to generate cash after investing in new operating assets and making cash dividend payments to stockholders ?


Working capital 

Net working capital 

Free cash flow 

Return on Equity

P/E ratio


Yanıt Açıklaması:

Free cash flow describes the cash remaining from operations after adjustment for capital expenditures and dividends. Thus, it ows the ability of the company to generate cash after investing in new operating assets and making cash dividend payments to stockholders.

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