Purchase Solution

Free cash flow versus net income

Not what you're looking for?

Ask Custom Question

Can you please explain the difference and why one is better than the other?

What is free cash flow? If you were an investor, why might you be more interested in free cash flow than net income?

I know that if free cash flow is increased the company will be more valuable.

Purchase this Solution

Solution Summary

This solution is comprised of a detailed explanation to answer the request of the assignment of more than 100 words of text.

Solution Preview

Free cash flow is the amount of cash generated by the business after meeting all its obligations for interest, tax and dividends and after all capital investment, excluding share sales or purchases by the Employee Trust while net income is ...

Purchase this Solution


Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking