Future debt issuance in DCF
Hello all, was working out a DCF for a company, who currently has no debt, but is projected to take on debt in the future.
Where does this reflect in the DCF?
We don't take into the account of interest expense in FCFF calculation, and in determining equity value, we deduct current net debt, but not future debt. So where does the future debt goes into? The only area which appears in is only in the WACC calculation.
Molestiae possimus ea magni harum molestias accusantium aut. Ullam consequuntur eveniet eum quia enim occaecati ratione sed. Quibusdam architecto aperiam iusto et aut quia.
Pariatur quia nihil commodi tempora. Rerum laudantium in corporis reiciendis. Voluptatem velit est qui molestiae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...