Free cash flow provides an indica- (SO 5) tion of a company's ability to: (c) pay dividends.

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Free cash flow provides an indica- (SO 5) tion of a company's ability to:

(c) pay dividends.

(a) generate net income.

(b) generate cash to pay divi- dends.

(c) generate cash to invest in new capital expenditures.

(d) both

(b) and (c).

AppendixLO1

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471691952

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Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Free cash flow provides an indica- (SO 5) tion of a company's ability to: (c) pay dividends.

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Financial Accounting Tools For Business Decision Making

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