medium · Corporate Credit Analysis fsa

If a company has positive FCFF but negative FCFE, which of the following is most likely?

1. The company's depreciation expense is higher than its capital expenditures for the period
2. The company is using all its operating cash flow and more to pay down debt or pay interest.
3. The company is growing its revenue at a pace that is fundamentally unsustainable long-term
4. The company is generating so much excess cash that it doesn't know how to deploy it

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