In finance, free cash flow (FCF) to the firm could be described by the following statements: FCF is a measure of the surplus cash that is available to the firm's investors. The higher FCF is, the more valuable the firm will be. FCF is often referred to simply as "cash". FCF is what is left over after a firm pays it's interest expense on outstanding debt. Depreciation and amortisation expenses must be deducted to calculate FCF when starting from EBIT. Which one of the following choices best describes FCF?

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In finance, free cash flow (FCF) to the firm could be described by the following statements:

FCF is a measure of the surplus cash that is available to the firm's investors.
The higher FCF is, the more valuable the firm will be.
FCF is often referred to simply as "cash".
FCF is what is left over after a firm pays it's interest expense on outstanding debt.
Depreciation and amortisation expenses must be deducted to calculate FCF when starting from EBIT.

Which one of the following choices best describes FCF?

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