Which of the following best describes free cash flow to equity? A) Free cash flow is the amount of cash flow available for distribution to all investors after all necessary investments in necessary capital have been made. B) Free cash flow is the amount of cash flow available for distribution to shareholders after all necessary investments in necessary capital have been made. C) Free cash flow is the net change in the cash account on the balance sheet D) Free cash flow is equal to net income plus depreciation. E) Free cash flow Is equal to the cash flow from non-taxable transactions.

Respuesta :

Answer:

B) Free cash flow is the amount of cash flow available for distribution to shareholders after all necessary investments in necessary capital have been made.

Explanation:

Free cash flow to equity is cash flow from operations less capital expenditures.

FCFE represents the maximum amount that can be paid as dividends to shareholders