Hello Sir!
What is the difference between free cash flow to equity and free cash flow to firm?
Thank you.
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Free cash flow to equity & free cash flow to firm
7y ago#1Free cash flow to equity is the cash flow after interest payments - i.e. the amount available to shareholders.
Free cash flow to the firm is the cash flow before interest payments - i.e. the amount available for all investors.
This is all explained in my free lectures, and you really cannot expect me to type out all of my lectures here :-)
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