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free cash flows

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Which of the following items affect free cash flows to debt and equity holders? Which affect free cash flows to equity alone? Explain why and how.
All answers assume a tax rate > 0.
An increase in accounts receivable
A decrease in gross margins
An increase in property, plant, equipment
An increase in inventory
Interest expense
An increase in prepaid expenses
An increase in notes payable to the bank

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The response addresses the queries posted in 253 words with references.

// The given points affect 'free cash flows', I would like to tell you a short description of these points which you can alter, modify or expand ,as per your requirement. //

All answers assume a tax rate > 0.

An increase in accounts receivable - decrease in cash flow to debt and equity ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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