ABSTRACT
The free cash flow can also be calculated by taking operating cash flow and subtracting capital expenditures. These flows are available for the remuneration of the holders of securities of the firm, whether they be bondholders or shareholders. From these free cash flows, we can compute the value of the firm, as the wealth created from its operating and financial
activities. Specifically, the value of the company is equal to the actualized amount of fund flows going to the shareholders and creditors.
