1. Which of the following statements is CORRECT?

a. Operating cash flow is the same as free cash flow (FCF).

b. Operating cash flow (OCF)is defined as follows:

OCF = EBIT(1-T) - Depreciation and Amortization.

c. Free cash flow (FCF) is defined as follows:

FCF = EBIT(1-T)+ Depreciation and Amortization + Capital expenditures.

d. Free cash flow (FCF) is defined as follows:

FCF = EBIT(1-T)+ Depreciation - Capital expenditures - Required changes in net operating working capital.