Sir i have only one query in this questio that why in the solution the examiner has not taken the interest net of tax for Ndege co at 7 percent , as far as i know in free cash flow we always subract interest
Ask the Tutor ACCA AFM
June 2014 q.3
9y ago#1No - free cash flows are before interest.
Free cash flows to equity are after interest.
Have a look at Chapter 16 of our free lecture notes.
thanks alot sir !
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