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.
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