Question #131
Reading: Reading 21 Free Cash Flow Valuation
PDF File: Reading 21 Free Cash Flow Valuation.pdf
Page: 64
Status: Unattempted
Question
A common approach to forecasting free cash flows is to:
Answer Choices:
A. project net income and expected capital expenditures
B. project earnings before interest and taxes (EBIT) and expected capital expenditures
C. calculate historical free cash flow and apply an expected growth rate
Explanation
Historical free cash flows are often used for forecasting.