Question: 2 Chapter 2 - Will Free Cash Flows (FCF) increase, decrease or remain the same for each of the following changes Note: The question asks

2 Chapter 2 - Will Free Cash Flows (FCF) increase, decrease

2 Chapter 2 - Will Free Cash Flows (FCF) increase, decrease or remain the same for each of the following changes Note: The question asks about FCF which is the numerator of the Value equation. You don't need to be concerned about the denominator. Change Impact on FCF a. A decrease in Accruals b. A decrease in Inventories c. Adding more debt and reducing equity. d. An increase in Tax Rates e. A decrease in equipment lease payments

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