ECN written Assignment
Im stuck on a Economics question and need an explanation.
Read the above article about free cash flow. In your opinion is a company that has positive free cash flow necessarily “doing well” and one with negative free cash flow “doing poorly”? Provide some examples to support your opinion. The article also mentions that free cash flow is often very volatile during the year. Why might that be the case? Briefly explain. Finally article mentions that free cash flow is a better measure than earnings per share. Do you agree with that opinion? Why or why not. Earnings per share is profit of a company divided by the number of shares of common stock outstanding. For example if a company had $100,000 in profit and 5000 shares of stock then earnings per share would be $100,000/5,000 = $20 per share. You do not need to address all of these questions, they are just to give you some ideas to think about.
Your response must be 300 to 500 words. File must be uploaded as an MS Word document or pdf file.
Please feel free to use information from class or other sources (Google searches and reading information online, reading other articles, etc.)
