Which of the following statements is false?

Multiple Choice

To estimate the operating cash flow $($OCF$),$ depreciation

should be added back to EBIT $($because it is a non$-$cash

expense$)$ and taxes should be deducted.

Operating cash flow $($OCF$)$ includes capital spending and

working capital requirements.

The higher the depreciation expense, the lower the tax

liability, other things held constant.

The cash flow available for distribution to debt and equity

investors after the firms pays new capital investments is

also known as the firm's free cash flow.

Stock repurchases create a positive cash flow in the Cash

Flow to Stockholders computation.