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 one year ago
Hello ,
I need a little clarification on the below. I accept it is a very basic question still can you please explain.
Why are we deducting fixed capital Investment for computing both FCFF as well as FCFE?
I believe Capital expenditure is for the growth of the firm and hence why can’t this item be added to the FCFE alone. As Equity holders has right on this as well.
Apologies if the Question is very basic.
Thanks in Advance,
Aarthi
 one year ago
Hello , I need a little clarification on the below. I accept it is a very basic question still can you please explain. Why are we deducting fixed capital Investment for computing both FCFF as well as FCFE? I believe Capital expenditure is for the growth of the firm and hence why can’t this item be added to the FCFE alone. As Equity holders has right on this as well. Apologies if the Question is very basic. Thanks in Advance, Aarthi

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