Hi Sir
Regards to Free cash flow of Ndege co. why do we need to deduct the debt of $40m from the calculations?
And for this question part (a) there is this organic growth, can u explain what it mean?
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June 2014 Q3 Vogel Co
11y ago#1Using free cash flow gives the value of the firm (equity plus long-term debt). So need to subtract the debt to get the value of the equity.
Organic growth is internal growth (as opposed to growing by acquisition of other businesses).
ok thanks Sir
Sir can u give an example on Internal growth?
11y ago#3Internal growth is growing by (for example) increasing market share, or by developing new products.
ok thank u sir?
11y ago#5You are welcome :-)
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