Which of the following statements is most correct:

a.Free cash flow is called free because the cost of capital for these cash flows is zero Xxx 

b. Stock is valuable only because it generates cash flows for the investor 

c. Managers can affect firm value by changing the riskiness of its cash flows 

d. a and b are correct e b and c are correct

Answer rating: 100% (QA)

Solution The stock is valuable simply because it generates cash flow f... View the full answer