Free cash flow to firm
Why is Tax not deducted in FCFF? When we start the calculation at EBITDA we subtract CAPEX & Change in NWC. Why don't we also subtract the tax we have to pay? To get to the FCFE we then only subtract tax? Why is that the case?
Why is Tax not deducted in FCFF? When we start the calculation at EBITDA we subtract CAPEX & Change in NWC. Why don't we also subtract the tax we have to pay? To get to the FCFE we then only subtract tax? Why is that the case?
Career Resources
Might want to check on your FCFF formula there
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