Asked by
Anisha Karmacharya
on Nov 19, 2024Verified
Free cash flow decreases when a company issues common stock for cash.
Free Cash Flow
The amount of cash generated by a business after accounting for capital expenditures (like buildings or machinery), essential for assessing the company's capacity to generate profit.
Issues Common Stock
The process by which a corporation sells new shares of its common stock to investors, thereby raising capital.
Decreases
A reduction in the value, amount, or number of something.
- Identify the importance of free cash flow as a measure of financial stability.
Verified Answer
RT
Learning Objectives
- Identify the importance of free cash flow as a measure of financial stability.