Question

A firm's capital structure does not affect its free cash flows as discussed in the text, because fcf reflects only operating cash flows, which are available to service debt, to pay dividends to stockholders, and for other purposes.

Answer 1

The answer is, the above statement is "true".

Free cash flow (FCF) refers to a measure of an organization's money related performance, figured as working income short capital consumptions. FCF shows the money that an organization can produce subsequent to spending the cash required to keep up or extend its benefit base. FCF is critical on the grounds that it enables an organization to seek after circumstances that upgrade investor value.