Clarification regarding practice exam:2, q.no 3
in
Discounted Cash Flow Valuation
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Visualizing DCF: Understanding financial projections through charts
There is still issue with the explaination and the answer as the UFCF (given) is incorrect due to incorrect values taken After NOPAT.
Please provide an explanation and an updated solution.
2 answers ( 0 marked as helpful)
Hello,
Could you elaborate the issue, please? Thanks!
The values of delta working capital, capex and other elements in UFCF are incorrect except for the calculation of NOPAT. I don't remember the exact values but I do remember that the Capex was -0.7 and was the value in the answer was 0.3 as one of the components of UFCF.
Also I faced difficulty in calculating the UFCF due to the confusion in the sign of the components, for example delta working cap decreased by -0.2 , so I'll take +0.2 as the final value right?