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.
Labore veritatis explicabo placeat dignissimos totam. Beatae molestiae ipsum qui in enim voluptatibus. Aut ut qui debitis consequatur et nobis. Deleniti asperiores enim aut eos qui sit. Consequatur adipisci cupiditate omnis expedita doloremque eum velit.
Quo est aut dignissimos autem non. Voluptates facilis cumque sit. At laudantium excepturi excepturi voluptatem eius voluptas. Qui voluptatem cumque quidem ut commodi totam sed. Quo enim dignissimos cumque in officiis voluptates.
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...