easy · Principles of Finance cost-of-capital-structure
If a company has a Negative Free Cash Flow to the Firm (FCFF) but a Positive Net Income, what is the most likely explanation?
- The company is using too much straight-line depreciation.
- The company is making very large capital expenditures (CapEx).
- The company is paying out too much in dividends.
- The company's cost of debt is higher than its return on assets.
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