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In kaplan’s answer to this question, ‘annual investment in non current assets’ is not subtarcted in calculating FCF to equity? While in the examiner artical on this topic, incremental FCapital investment is subtracted before calculating MV to equity.
And conceptually it should be as this money no longer belongs to equity or debt holders.I’ll be grateful for your response!
Its just typing.
They have then subtracted the annual investment, and done the remaining calculations on the final figure.
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