Free cash flow is best described as:

A) A firm's interest payments to creditors less net new borrowings.
B) Dividends paid out by a firm less net new equity raised.
C) Free cash flow is also referred to as cash flow from assets.
D) The net difference between total assets and total liabilities.
E) The difference of cash flow to bondholders and shareholders

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets, indicating the company's ability to generate additional revenues.

Cash Flow from Assets

The total amount of money being transferred in and out of a business, especially from operational, investing, and financing activities.

Dividends Paid

The portion of a company’s earnings distributed to its shareholders, usually in the form of cash or additional shares.