Question

When calculating net operating cash flow (unlevered free cash flow), the following are NOT taken into...

When calculating net operating cash flow (unlevered free cash flow), the following are NOT taken into account:

A.

Changes in net working capital

B.

Taxes

C.

Debt service and dividend payments

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Answer #1

Option C : debt service and dividend payments

the debt service and dividend payments are financing activity of cash flow so it is not considered as operating cash flow.

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