Free Cash Flow to Equity (FCFE) 6th question in Last Exercice
Hello,
In my calculations, I found the FCFE to be $590 million. Could you explain why there might be this difference in the FCFE value? Is there a specific adjustment or component in the calculation that I might be missing?
Thank you
In my calculations, I found the FCFE to be $590 million. Could you explain why there might be this difference in the FCFE value? Is there a specific adjustment or component in the calculation that I might be missing?
Thank you
3 answers ( 0 marked as helpful)
Hi, would you please share your calculations? Not sure where the discrepancy might come from.
Hi,
FCFE = FCFF - [Int × (1 – tax rate)] + Net borrowing
FCFF = 575
Cash interest paid = 35
Net borrowing = 50
FCFE = 590.
FCFE = FCFF - [Int × (1 – tax rate)] + Net borrowing
FCFF = 575
Cash interest paid = 35
Net borrowing = 50
FCFE = 590.