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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?
Using 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).
Internal growth is growing by (for example) increasing market share, or by developing new products.
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