From the definition of free cash flows on the previous slide, do you think the following would be added, subtracted, or not included in the definition of free cash flows?

Free cash flows are cash flows that the firm's managers can return to the firm's suppliers of capital (debtholders and/or stockholders). Management is not obligated to devote these cash flows to other uses, thus the term free cash flow

1.money needed to invest in new production equipment

2.money needed to pay dividends to common stockholders

3.money needed to pay interest expenses

4.money needed to pay income tax obligations

5.money needed for share repurchases