Business Valuation

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October 12, 2013 at 5:06 pm #142619
sathjyot
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Pilot paper upto Dec-12 Qustion one requires ascertaining enterprise value of fliHi. In the answer sheet to find the FCFE only capital expenditure of 120.20 million is deducted from the Net cash flow from operating activites. I understand (or as per Kaplan’s study text )various expenditure including debt interest and repayments are to be deducted. Also in the answer debt outstanding as on Dec-2005 for $150 million is not deducted from the Value arrived.

Can anybody shed some light to this Please??
October 13, 2013 at 11:20 am #142659
tournament
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I have another confusing on the same question. According to the FCFE Formula: FCFE = Net Income – Net Capital Expenditure – Change in Net Working Capital + New Debt – Debt Repayment. My question is why the debt repayment of $31M has not been deducted from the value arrived?
October 14, 2013 at 5:50 pm #142769
sathjyot
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Dear tournament<

Please do not hijack one query needing solution with another one. You know more often people normally dont even open a query when they see post 2 at the summary section of this forum.

I think I may have to re-post this!!!
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