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LO3. How do we use free cash flow to evaluate business performance? a) What is the formula for calculating free cash flow? b) How

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LO3. How do we use free cash flow to evaluate business performance? a) What is the formula for calculating free cash flow? b) How much free cash flow does ABC Company expect for 20XX? ABC Company expects the following for 20XX: Net cash provided by operating activities Cash payment for updates to facilities Cash payment for dividends to shareholders Net cash provided by financing activities $80,000 10,000 1,000 15,000

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