Which of the following is NOT a variable used in the calculation of free cash flow (FCF)?
A)sales (revenues)
B)operating expenses and taxes
C)expected (required) investments in operating capital
D)interest and other financing costs

Question

Quizplus · Accepted Answer

Interest and other financing costs are not included in the calculation of free cash flow as they represent cash outflows related to financing activities, rather than operating activities. Free cash flow is typically calculated as operating cash flow minus expected investments in operating capital. Sales and operating expenses and taxes are included in the calculation as they impact operating cash flow.

Which of the Following Is NOT a Variable Used in the Calculation