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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
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.
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