Question
What does FCFF represent economically in valuation?
Tap to flip
Answer
Cash available to all capital providers after operations and required investment.
Tap to flip back
Question
How do FCFF and FCFE differ in who can claim the cash flow?
Tap to flip
Answer
FCFF is for debt and equity; FCFE is for equity only.
Tap to flip back
Question
How does IFRS classification of interest paid affect the FCFF formula derived from CFO?
Tap to flip
Answer
If interest paid is in CFF, no add-back is needed.
Tap to flip back