In calculating free cash flows,which of the following is/are not NOT an investment that should be subtracted from gross cash flows?
A)Change in operating working capital.
B)Change in debt outstanding.
C)Net capital expenditures.
D)Investment in goodwill and acquired intangibles.

Question

Quizplus · Accepted Answer

Change in debt outstanding is not an investment and should not be subtracted from gross cash flows in calculating free cash flows. The other options (A, C, and D) are all investments that should be subtracted from gross cash flows to calculate free cash flows.

In Calculating Free Cash Flows,which of the Following Is/are Not