What is free cash flow? Why is it important in the acquisition of a fi
What is free cash flow? Why is it important in the acquisition of a firm particularly a highly leveraged firm?
What will be an ideal response?
ANSWER
Essentially, free cash flow are the funds available to pay all claimants on a firm. How much is available to meet the needs of creditors, and various equity holders. One definition of FCF = (EBIT) * (1-t) + depreciation + amortization – changes in capital expenditures – changes in NWC.
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.