CFA® Level II Equity Valuation - Derive FCFF and FCFE formulas with ease!
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Күн бұрынThis is an excerpt from our comprehensive animation library for CFA candidates. For more materials to help you ace the CFA Exam, head on down to prepnuggets.com.
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Unlock the secrets of Free Cash Flow (FCF) in this easy-to-follow tutorial! 📈 Dive deep into the intuitive derivation of both FCFF (Free Cash Flow to the Firm) and FCFE (Free Cash Flow to Equity) formulas. No more memorization-understand the WHY behind the numbers. Perfect for finance beginners and pros alike! 🔍💡 #FreeCashFlow #FinanceMadeSimple #FCFFvsFCFE"
@PatBatemanAM Ай бұрын
thank you, made this topic very easy to understand
@PrepNuggets 8 күн бұрын
Great to hear!
@kkok8131 13 күн бұрын
5:24 I think your reasoning for adding back interest * (1-t) is wrong. The FCFF are without capital structure consideration. Hence, you need to re-calculate the tax so it does not include the tax shield. So you're not actually adding back interest, you're calculating what NOPAT would be without a tax shield (full tax), and hence, no interest expense. Didn't hear you mention that
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