Free cash flow is calculated as

A) net income minus net capital expenditures minus dividends paid.
B) net income minus dividends paid.
C) net cash provided (used) by operating activities minus net capital expenditures minus dividends paid.
D) net cash provided (used) by investing activities minus net capital expenditures minus dividends paid.

Free Cash Flow

The amount of cash generated by a company after accounting for capital expenditures, essential for expansion and maintenance of operations.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue, representing the profit.

Dividends Paid

Cash or other forms of assets distributed by a corporation to its shareholders out of its earnings.