True concerning free cash flows to firm

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Reference no: EM131875640

1. Preparation of a monthly cash flow statement is recommended in order to

A. Periodically assess the company’s cash position

B. Adjust pro-forma statements for the remaining months

C. Determine inventory levels

D. Both A and B

E. None of the above

2. Which of the following is true concerning free cash flows to the firm (FCFF)?

FCFF represents operating cash flows less changes in net working capital and capital spending.

Financing expenditures, including interest and dividend payments, are deducted to arrive at FCFF.

The calculation of FCFF is considered an important aspect of project analysis.

A. I only

B. I and II only

C. I and III only

D. I, II, and III

Reference no: EM131875640

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