Double counting of Tax shield and free cash flow

Hi Friends,

FCF=EBIT*(1-Tc) + Depr. - Capex - WC

My understanding is that interest expense impacts the tax amount. However, here in FCF formula, we don't account the Tax shield because we are going to discount the FCF by the WACC that already factors in the impact of tax shield and thus we are avoiding double counting of tax shield.

My questions are 1. is the FCF figure here standalone the real amount of Free cash flows from operations? or should it be the following: FCF = Net Income + Interest expense + Depr - Capex - WC (note that I used "Interest expense" and not "interest expense*(1-T)

  1. Suppose I want to use WACC= Re *We + Rd *Wd (without factoring in the tax shield impact), what FCF formula should I use then.

Thank you

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