Free cash flow, Financial Management

Free Cash Flow

Free cash flow presents the amount of cash generated by the existing operations of a corporation and that is not needed for reinvestment in new projects in the firm. Without cash flow it can be positive or negative for any corporation in a particular year. Ultimately, however, since this presents the amount that can be returned to stockholders, it is eventually be positive in order for the firm to sustain and raises its dividend payments.

Posted Date: 10/17/2012 3:24:59 AM | Location : United States







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