Which of the following items affect free cash flows to debt

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Which of the following items affect free cash flows to debt and equity holders? Which affect free cash flows to equity alone? Explain why and how. 
All answers assume a tax rate > 0. 
An increase in accounts receivable 
A decrease in gross margins 
An increase in property, plant, equipment 
An increase in inventory 
Interest expense 
An increase in prepaid expenses 
An increase in notes payable to the bank

Reference no: EM131144321

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