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Guide to Financial Statements (2 of 2)
Motley Fool Money
Free Cash Flow - The Only Four Things a Company Can Do With It
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The only four things a company can do with their free cash flow is pay a dividend. That's the first line item you can pull right off the cash flow statement. Pay down debt, repurchase stock and let it build up on the balance sheet are the other three items. All these are line items. It tells you exactly how the company is generating itsCash Flow Statement. The last thing i want to do is talk about some of the connections between these statements.
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