Question: What does a negative value for unlevered free cash flow imply for the claimants of a firm? Management is doing a bad job The firm
What does a negative value for unlevered free cash flow imply for the claimants of a firm? Management is doing a bad job The firm must raise capital from the capital markets (e.g., debt, equity), or liquidate internal assets (e.g., cash) Revenues are less than costs Shareholders have made a bad investment The firm is overinvesting
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