Respuesta :
The free cash flow to the firm is $125.
What is free cash flow?
Free cash flow (FCF) or free cash flow to firm (FCFF) is a term used in corporate finance to describe how much an organization's operating cash flow exceeds its demands for working capital and expenditures for fixed assets (known as capital expenditures). It is the amount of cash flow that can be taken out of a business and given to creditors and stockholders without having an adverse effect on how the business operates. As a result, it serves as a sign of a company's financial adaptability and is valuable to those who own the firm's equity, debt, preferred stock, and convertible securities as well as potential lenders and investors. Depending on the audience and the data at hand, there are different approaches to compute free cash flow.
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