extrinsic stock
intrinsic stock
investing cash
free cash flow
Answer is Right!
Answer is Wrong!
The correct answer is D. free cash flow.
Free cash flow is the cash flow available for all investors of a company after taking into account all expenses and investments. It is calculated by taking the net operating profit after tax (NOPAT) and subtracting the capital expenditures (CAPEX) and working capital changes.
Free cash flow is an important metric for investors because it shows how much cash a company is generating from its operations. This information can be used to assess the company’s financial health and its ability to pay dividends or make acquisitions.
- Extrinsic stock is a stock that is valued based on factors outside of the company, such as the overall market conditions or the company’s industry.
- Intrinsic stock is a stock that is valued based on the company’s fundamental performance, such as its earnings and cash flow.
- Investing cash is the cash that a company uses to invest in its business, such as by purchasing new equipment or making acquisitions.
I hope this helps! Let me know if you have any other questions.