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Hello Sir!
What is the difference between free cash flow to equity and free cash flow to firm?
Thank you.
Free 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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