Cash flows available to pay the firm's stockholders and debt holders after the firm has made the necessary working capital investments, fixed asset investments, and developed the necessary new products to sustain the firm's ongoing operations is referred to as:A. Operating cash ow B. Net operating working capital C. Free cash ow D. None of these.

Business · High School · Mon Jan 18 2021

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The cash flows available to pay the firm's stockholders and debt holders after essential investments in working capital, fixed assets and necessary new product development for sustaining ongoing operations is referred to as:

C. Free cash flow

Free cash flow represents the cash generated by a company after accounting for all capital expenditures required to maintain or expand its asset base and support ongoing operations. It's the amount of cash available for distribution to both stockholders (via dividends or buybacks) and debt holders (through debt servicing or repayment) after the necessary investments have been made to sustain and grow the business.

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