Free cash flow measures the cash available for distribution to debt holders and shareholders. Look at Section

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Free cash flow measures the cash available for distribution to debt holders and shareholders. Look at Section 3.4 where we calculate free cash flow for Home Depot. Show how this cash was distributed to investors. How much was used to build up cash reserves?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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