After a company has invested in the assets required to support continued operations, cash flows become available for distributions to stockholders including debt holders.
<h3>Why is free cash flow important?</h3>
A business's free money flow can reveal information about its health. If you have a lot of free cash flow, you could have sufficient money to cover your operational costs plus some. The balance may be distributed to investors, reinvested in the company, or used for stock buybacks.
<h3>What causes free cash flow to rise?</h3>
debt restructuring to reduce interest rates and improve repayment terms. restricting, postponing, or cutting back on capital expenditures. hiring a CFO or part-time CFO to use management accounting to enhance financial strategy and overall operations.
To know more about Free cash flow visit:
brainly.com/question/14762501
#SPJ4