Interest Income in Levered Free Cash Flow
Do we include interest income in the calculation for levered FCF? I see most guides saying to do so -- for example, they say to subtract tax-adjusted interest expense, add tax-adjusted interest income, and subtract mandatory debt payments when going from unlevered FCF to levered FCF. Why do we include interest income if it represents income generated from excess cash (which isn't a part of the core business)?
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