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anonymous

  • 5 years ago

Hi, why does FCFF=EBIT(1-t)-Reinvestment? isn't the FCFF supposed to include the reinvestment?

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  1. anonymous
    • 5 years ago
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    No, FCFF is the money after expenses and reinvestments.

  2. anonymous
    • 5 years ago
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    FFCF is what is left over from after-tax EBIT after meeting reinvestment needs meaning net capex (capex-depreciation) and change in non cash working capital.

  3. anonymous
    • 5 years ago
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    thanks, so the difference between FCFF and FCFE is only the interest, right?

  4. anonymous
    • 5 years ago
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    All esle being equal, do not forget net debt repayments (debt repayments - new debt).

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