Free Cash Flow Notes Questions with Answers PDF Download - 131

An operating cash flows is $12000 and the gross fixed asset expenditure is $5000 then the free cash flow will be

1. −$7000
2. 7000
3. 17000
4. −$17000

The movement of price or the rise or fall of prices of options is classified as

1. option lattice
2. pricing movement
3. price change
4. binomial lattice

Earnings before interest, taxes, depreciation and amortization average multiple for publicly traded companies is classified as

1. entity multiple
2. depreciation multiple
3. earnings multiple
4. amortization multiple

The variability of stock price, option term to maturity and the risk free rate are the dependents of

1. price of an option
2. expiry of an option
3. exercise of an option
4. estimation of an option

An increase in marginal cost of capital and the capital rationing are two arising complications of

1. maximum capital budget
2. greater capital budget
3. optimal capital budget
4. minimum capital budget