Major corporation is acquiring abrams company by issuing its common stock in a nontaxable exchange. major is issuing commons stock with a fair value of $850,000 for net identifiable assets with book and fair values of $400,000 and $600,000, respectively. what value will major assign to the identifiable assets?

A. Free cash flow measures the cash generated by a firm after payments to debt or equity holders are considered. This statement is FALSE

Explanation:

Free cash flow is the cash flow available to all the investors in a company and these could be common stockholders, preferred shareholders, and lenders. As such, this is cash-flow that is left after the company has covered all operating expenses (excluding non-cash items), and CAPEX. As such, using this measure, it is possible to evaluate a company performance irrespective of the capital structure that is adopted.