Monitor free cash flow in order to understand value

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Which of the following is NOT a reason to monitor free cash flow in order to understand the value of a business?

Free cash flow suggests a firm's maneuverability.

Free cash flow is directly correlated with profit.

Free cash flow involves less sophisticated analyses and fewer assumptions and thus is more accurate.

Free cash flow explains the change in a firm's cash balance by identifying sources and uses of cash.

Reference no: EM131321376

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