What is free cash flow to the firm (FCFF)?
- A Net profit plus depreciation
- B Cash available to all capital providers after operating expenses, taxes and reinvestment
- C Cash held in the bank at year end
- D Revenue minus cost of goods sold
Answer
Cash available to all capital providers after operating expenses, taxes and reinvestment
FCFF is cash generated before financing costs, available to both debt and equity holders. FCFE is the narrower figure available to shareholders alone.





