Full Form of FCFH
| Full Form: | Free Cash Flow Hypothesis |
|---|---|
| Category: | Business & Finance |
| Sub Category: | Accounting |
What is FCFH Full Form?
FCFH is full form Free Cash Flow Hypothesis
What is Free Cash Flow Hypothesis?
The free cash flow hypothesis posits that cash flow increases the agency costs of firms with poor investment opportunities. ... So, once management has exhausted positive NPV projects, it proceeds to invest in negative NPV projects rather than pay out funds to shareholders.