Return on equity/cash on cash calc
I'm looking at a cash flow statement. What line items do you include in free cash flow, including a disposition, to arrive to your yearly and all in cash on cash return on investment. Do you include yearly fund level accounting in the cash yield? Broker sale cost? Prepayment on debt? etc... I've seen many opinions on what to include here, as well as what is included in IRR. Even spoke with a professor of finance who has 20+ years in PE, however his answer was very vague and can be summed up as 'be honest, know your partners, model everything yourself.'