Which statement best differentiates unlevered free cash flow from levered free cash flow?

Which statement best differentiates unlevered free cash flow from levered free cash flow?

• A. Unlevered FCF reflects cash to equity after debt service
• B. Unlevered FCF represents cash to all capital providers before debt service
• C. Unlevered FCF reflects cash available to all capital providers; levered FCF reflects cash to equity after debt service
• D. Levered FCF equals enterprise value growth

Answer: (C)