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

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anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0No, FCFF is the money after expenses and reinvestments.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0FFCF is what is left over from aftertax EBIT after meeting reinvestment needs meaning net capex (capexdepreciation) and change in non cash working capital.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0thanks, so the difference between FCFF and FCFE is only the interest, right?

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0All esle being equal, do not forget net debt repayments (debt repayments  new debt).
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