Question: Please reply quickly and not handwritten Question 3: Suggest your explanation (or opinion) for each of the question provided below: a. Why can free cash

Please reply quickly and not handwritten Please reply quickly and not handwritten Question 3: Suggest your explanation (or

Question 3: Suggest your explanation (or opinion) for each of the question provided below: a. Why can free cash flow (FCF) be regarded as a dividend, that is. a distribution of value rather than the value created? (9 points) b. A firm has positive free cash flow and a (positive) net dividend to shareholders that is less than free cash flow. What must the firm do with the excess of the free cash flow over the (net) dividend? (8 points) c. Explain why profitable company sometimes have (report) negative cash flows? (8 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!