Which of the following is a component for calculating free cash flow?

Free cash flow is a measure of a company's financial performance that represents the cash available for distribution to the company's creditors and shareholders after accounting for capital expenditures necessary to maintain or expand its asset base. It is calculated using several components.

Net income is crucial as it serves as the starting point for calculating cash flow from operations. It reflects the company's profitability, though it may not fully indicate cash flow since it includes non-cash items such as depreciation and amortization.

Capital expenditures are also necessary to determine free cash flow because they represent the funds invested in physical assets, which are deducted from operating cash flow. Since free cash flow reflects the cash remaining after essential investments, accounting for these expenditures is vital.

While cash dividends are not directly used in the calculation of free cash flow, their inclusion in the context of available cash for distribution makes them relevant when considering the cash available after all investments and operating costs.

Each of these components plays a role in understanding a company's cash generation ability and its financial health. Therefore, considering all these elements together provides a more comprehensive picture of free cash flow.