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Which of the following statements is TRUE regarding free cash flow the firm (FCFF)? FCFF is the cash flow available to the companys suppliers of

Which of the following statements is TRUE regarding free cash flow the firm (FCFF)?

  1. FCFF is the cash flow available to the companys suppliers of capital after all operating expenses (including taxes) have been paid and necessary investments in fixed capital have been made.
  2. FCFF is cash flow available to the companys suppliers of capital after all operating expenses (including taxes) have been paid and necessary investments in working capital and fixed capital have been made.
  3. FCFF is the cash from operations minus capital expenditures.
  4. A and B

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