Invest in business facility improvement-pay interest expense

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Reference no: EM13846292

A firm can make any form of distribution to its shareholders using the free cash flow tht it generates. The underlying objective is to maximize shareholder wealth by increasing the firm's value. Any use of the FCF that has a negative impact on the firm's value is not considered a good use of the FCF.

Which of the following uses is considered good use of free cash flow?

1. Invest in business facility improvement

2. Pay interest expenses

Reference no: EM13846292

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