Explain the concept of "free" cash flows. What makes them "free"?

a. Free cash flows emanate from the balance sheet, after projecting how all of the assets and liabilities will generate future cash flows.

b. Free cash flows are simply measured as cash flows from operating activities plus or minus cash flows from investing activities on the statement of cash flows.

c. Free cash flows are cash flows that are generated by the operations of the firm and, after making necessary investments in future operating and investing activities, are unencumbered and available to be distributed to shareholders and debtholders.

d. Free cash flows are cash flows already owned by the firm, and so the firm does not have to incur costs to raise these cash flows.