If we increase capex and depreciation by the same number (capex +100 depr +100) How will that affect our FCFE
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Would it not reduce FCFe? Since your EBIT is now lower due to the depreciation expense and the D&A and Capex will cancel each other out.
My logic is that it will reduce FCFE since NEt income would be lower and capex and depreciation will cancel out
Same logic.
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