5. Free Cash Flow is available to pay which of the following? A. Government - for...

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5. Free Cash Flow is available to pay which of the following? A. Government - for...


5.	Free Cash Flow is available to pay which of the following?
	A. Government - for corporate taxes
	B. Employees - for salaries
	C. Suppliers - for purchases of inventory
	D. Both equity holders and debt holders - for dividends and interests
	E. Suppliers - for purchases of raw materials

business finance

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Answer 1

Answer #1

Ans D. Both equity holders and debt holders - for dividends and interests

Free cash flow is the amount found after deducting all expenses, so, epenses related to purchase of raw material, inventory, salaries, taxes are already deducted in finding free cash flows.

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Answer 2

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