Calculating FCFE
Hi, when calculating FCFE, capital expenditures (fixed capital investment) has to be deducted and net borrowing has to be added. However, what about given loans? I'm working in construction company, which has many construction companies (SPVs) in their group. The company which I'm analysing regularly provides loans for other group companies. This amount is shown in Cash flows from investing activites statement. According to formula, I shouldn't deduct given loans, but from logical point of view, given loans for group companies is kind of like investing in those companies, like investing in fixed asset. So should I eliminate given loans in such case when I'm calculating FCFE (or even FCFF)?
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