10. Select all that is/are true about the cash flows of a firm

a. In measuring free cash flows we are more interested in considering cash flows from an accounting perspective rather than the perspective of the firms shareholders and investors.

b. Net cash flow does not include after-tax interest expense.

c. While an income statement measures a companys profits, profits are not the same as cash flows; profits are calculated on a cash basis rather than an accrual basis.

d. A firm which invested more cash in assets and working capital than operations, will have a positive operating cash flow and a negative cash flow from assets.

e. Free cash flow from an operating perspective must equal free cash flow from a financing perspective

f. If dividends paid is greater than net equity sold for the year, then the cash flow to stockholders is negative.

g. FCF may be defined as net operating profit after taxes (NOPAT) minus the amount of net investment in operating working capital and fixed assets necessary to sustain the business.