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Free cash flow

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Free cash flow

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • July 21, 2018 at 5:33 am #464102
    jihun lee
    Member
    • Topics: 117
    • Replies: 51
    • ☆☆

    Usually if the question just ask us to calculate free cashflow , how do we know whether we have to calculate free cashflow to the firm or free cashflow to the equity ?

    And in p4 question, if they do ask us to calculate free cashflow, they will explicitly say whether its free cashflow to the firm or equity ???

    July 21, 2018 at 7:48 am #464108
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54720
    • ☆☆☆☆☆

    Yes – the question makes it clear whether it is free cash flow to the firm or free cash flow to equity.

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