Q1 which one of the sentences is true?

a. The FCFF is always higher for firms finaced by equity

b. FCFF is including the purchasing of new equipment

c. The FCFF is always higher for firms with debt

d. FCFF can be never negative

Q2 which one of the sentences is true?

a. FCFF is the result of operational and investment activities

b. CAPEX is never part of the FCFF because it includes D&A which is not a cash movement

c. FCFF includes paid interests

d. FCFF is lower than FCFE because the owners have to pay FCFD from their cash flow

Q3 FCFF is larger

a. None is true

b. If the inventory increases the volume of NWC

c. If the firm buys a fixed asset having a zero book value

d. If the firm has no debt

Q4 if you change the Debt/equity structure of your firm

a. FCFF will increase since their risk is changing

b. FCFF will change due to the effects of the financial structure

c. THE FCFE will not change because it contains only operational items

d. The FCFF will not change