Question
In: Finance
Define free cash flow Group of answer choices The total change in cash for the firm...
Define free cash flow
Group of answer choices
The total change in cash for the firm or project
The cash flow that is paid out to investors through dividends, stock repurchases, and debt coupons/interest
The cash flow that is available to be paid out to investors, regardless of the method of payment (dividends, stock repurchases, interest payments)
The cash flow that is paid out to equity investors through dividends or stock repurchases
Solutions
Expert Solution
The cash flow that is available to be paid out to investors, regardless of the method of payment (dividends, stock repurchases, interest payments)
the above is answer as it is the definition of free cash flow
jeff jeffy answered 2 years agoRelated Solutions
Using the information below, answer the questions: • Firm named Galaxy has a free cash flow...
Using the information below, answer the questions:
• Firm named Galaxy has a free cash flow (FCF) of $13
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• Galaxy's net income is $50million and total book equity is
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• Galaxy's debt-to-equity ratio is 1.25
• Galaxy's market value of debt is 150 million
• Galaxy's tax rate is 25%
• Galaxy’s FCF and earnings will grow at a constant rate of
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• Galaxy’s equity beta is 1.3
• US 3 month T-bill rate is 1.5%...
Which of the following is an example of firm-specific risk? Group of answer choices A.) An...
Which of the following is an example of firm-specific risk?
Group of answer choices
A.) An auto company recalls its vehicles due to the fuel
emission problem.
B.) The financial crisis in U.S. causes security prices around
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C.) Federal Reserve increases the short-term interest rate by
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2.)
he weighted average cost of capital for a firm:
Group of...
Which of the following statements about cash flows is not correct? Group of answer choices Cash...
Which of the following statements about cash flows is not
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What is the BEST evidence that a firm has a competitive advantage? Group of answer choices...
What is the BEST evidence that a firm has a
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Group of answer choices
The firm’s brand is better known than competing brands for the
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The firm has greater profits per product sold than competitors
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The firm’s stock valuation is higher than competitors for the
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The firm has grown faster than competitors over the last three
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A firm is expected to have free cash flow of $881 million next year. The firm...
A firm is expected to have free cash flow of $881 million next
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If a portfolio holds three stocks in equal amounts, and the
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How to calculate the free cash flow of the firm (also referred to as the firm’s...
How to calculate the free cash flow of the firm (also referred
to as the firm’s free cash flow) directly? How to calculate the
firm’s free cash flow from earnings in a levered firm? What is the
appropriate discount rate for the firm’s free cash flow if the firm
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