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What are the difference between free cash flow and displayed

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Reference no: EM132757910

Problem 1: Why do we need calculate two ratios, operating cash flow to current liabilities and operating cash flow to capital expenditures? Explain the link between them.

Problem 2: What are the differences between free cash flow and the cash flows displayed in the statement of cash flows? Why do financial professionals like to use free cash flow to evaluate the firm value?

Reference no: EM132757910

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