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FCF calculation

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › FCF calculation

  • This topic has 0 replies, 1 voice, and was last updated 12 years ago by labidaxin.
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  • October 31, 2012 at 9:22 am #54951
    labidaxin
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    • Topics: 1
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    when calculate free cash flow, PBIT*(1-tax rate), it means that all PBIT is taxable including the interest, but the interests expense can be deductible for tax purpose. what’s the meaning of FCF?? It bases on the net interest (after tax) received by the debtholder? how to calculate the FCF if the interest received by debtholder is not taxable?

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