Free cash flow:

A) includes investing cash flows as well as the financial cash flows.
B) assumes that a company needs a constant asset base.
C) assumes that the firm will remain competitive and continue growing.
D) always includes increases in net fixed assets and in long-term liabilities.

Free Cash Flow

A financial measure representing the amount of cash generated by a business that is available for distribution to its security holders after accounting for reinvestment in assets.

Investing Cash Flows

Cash transactions associated with buying and selling long-term assets and other investments, reflecting a company’s investment activities.

Financial Cash Flows

The inflows and outflows of cash resulting from a company's financial activities, such as financing and investing operations.